LEGISLATIVE COUNSEL'S DIGEST

(1) Existing law vests the Public Utilities Commission with regulatory authority over household goods carriers. Existing law imposes upon household goods carriers, and every person or corporation, owning or operating motor vehicles in the transportation of property for hire upon the public highways, under the jurisdiction of the commission, a license fee equal to 1/10 of 1% of the gross revenue, as defined.

This bill would, on July 1, 2018, rename household goods carriers “household movers” for purposes of this regulatory and fee authority, revise and recast the regulatory requirements imposed on household
movers, and transfer that regulatory authority to the Division of Household Movers within the Bureau of Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation in the Department of Consumer Affairs. The bill would establish the Household Movers Fund in the Professions and Vocations Fund and would require all moneys, including fines or penalties,
collected for the regulation of household movers to be deposited in the fund. The bill would require moneys in the fund, upon appropriation by the Legislature, to be expended by the department in regulating household movers. The bill would repeal the license fee. The bill would
impose fees for the issuance, renewal, reinstatement, and transfer of a permit, and would require the bureau, on or before January 1, 2023, to adopt and implement a fee schedule to adjust the fees imposed for these purposes. The bill would also authorize the bureau to provide for different fees for purposes of household movers. The bill would specify that a permit expires 2 years from the date of issuance.

(2) Existing law vests the commission with certain regulatory authority over vessels for hire.

This bill would, on July 1, 2018, transfer that regulatory authority to regulate vessels for hire to the Division of Boating and Waterways within the Department of Parks and
Recreation.

(3) Existing law provides the commission with broad regulatory jurisdiction and authority over public utilities, including common carriers, electrical corporations, gas corporations, telephone corporations, and water corporations. Existing law prohibits a commissioner from holding an official relation to or having a financial interest in a person or corporation subject to regulation by the commission and requires the commission to adopt an updated Conflict of Interest Code and Statement of Incompatible Activities by February 28, 1998.

This bill would prohibit an executive of a public utility from serving as a commissioner within 2 years after leaving the employment of the utility. The bill would require the commission to maintain an updated Conflict of Interest Code and Statement of Incompatible Activities. The bill would establish an ethics officer within the legal division of the
commission. The ethics officer would be designated by the general counsel of the commission and would be responsible for instituting a program of enhanced ethics training for all commissioners and employees of the commission. The ethics officer would additionally be responsible for providing confidential advice to commissioners and employees of the commission relative to the commission’s Conflict of Interest Code, Statement of Incompatible Activities, and limitations on ex parte communications.

(4) Existing law requires the commission to appoint an executive director who is responsible for the commission’s executive and administrative
duties and to organize, coordinate, supervise, and direct the operations and affairs of the commission and expedite all matters within the commission’s jurisdiction. Existing law authorizes the executive director to employ those officers, administrative law judges, experts, engineers, statisticians, accountants, inspectors, clerks, and employees as the executive director deems necessary to carry out the provisions of the Public Utilities Act or to perform the duties and exercise the powers conferred upon the commission by law.

This bill would authorize the executive director to authorize commission employees to undertake temporary training and development assignments with other agencies, departments, and commissions that undertake coordinated activities with the commission, including the State Energy Resources Conservation and Development Commission, the State Air Resources Board, and the Division of Oil, Gas, and Geothermal Resources. The bill would require the
commission to appoint a chief administrative law judge and a chief internal auditor, to hold office at the pleasure of the commission and to perform specified functions.

(5) Existing law requires that the commission comply with specified requirements when entering into contracts for consultant or advisory services, except when the commission makes a finding that extraordinary circumstances justify expedited contracting for consultant or advisory services.

This bill would clarify that these requirements do not apply to contracts for legal services by attorneys who are not employees of the commission. The bill would require the commission to notify the Attorney General when contracting for legal services by attorneys who are not employees of the commission.

(6) The California Constitution authorizes the commission to establish rules, examine records, and prescribe a uniform system of accounts for all public utilities. The Public Utilities Act requires the commission to inspect and audit the books and records of electrical corporations, gas corporations, heat corporations, telegraph corporations, telephone corporations, and water corporations for regulatory and tax purposes.

This bill would authorize the commission to conduct financial and performance audits of any entity or program created by any order, decision, motion, settlement, or other action of the commission. The bill would authorize the commission to conduct additional followup work that is related to any findings and recommendations related to the audit. If the commission undertakes an audit pursuant to this authority, the bill would require the commission to transmit a copy of the audit report to the Legislature and to the Governor immediately
upon completion of the audit and to make the report available to the public.

(7) Existing law requires the commission to establish an office of the public advisor and requires the office of the public advisor to assist members of the public and ratepayers who desire to testify before or present information to the commission in any hearing or proceeding of the commission.

This bill would require the public advisor to receive complaints and comments from members of the public concerning how the commission is carrying out its functions. The bill would require the public advisor to assess the nature of substantive complaints and comments from members of the public and take them into consideration when analyzing and recommending options for resolution of the matters underlying those complaints and comments. The public advisor would be required to maintain the confidentiality of the identity of a member of
the public who makes a complaint or comment unless the member of the public expressly indicates a desire to communicate his or her identity to the commission.

(8) Existing law vests the commission with regulatory authority over private carriers, as defined.

This bill would, on July 1, 2018, revise and recast the regulatory requirements imposed on private carriers and would transfer that regulatory authority to the Department of Motor Vehicles. The bill would revise the information required to be submitted to the department by an applicant for a registration as private carrier, as specified.

(9) Existing law vests the commission with certain regulatory authority over commercial air operators.

This bill would, on July 1, 2018, transfer that authority to the city, county, or city and county with geographic jurisdiction. By imposing additional duties on a local jurisdiction, the bill would impose a state-mandated local program. The bill would authorize the local jurisdiction to charge reasonable fees for its regulatory oversight of commercial air operators. The bill would require commercial air operators to maintain in force at least $1,000,000 of liability insurance with additional liability coverage of $100,000 for each passenger of an aircraft.

(10) This bill would, on July 1, 2018, reappropriate the unexpended balance of funds appropriated to the commission to fund its regulatory activities with regard to household movers, vessels for hire, and private carriers to the respective state agencies given jurisdiction by the bill, thereby making an appropriation.

(11) This bill would, on July 1, 2018, require, in any action or proceeding by or against the commission pertaining to the matters related to household
movers, vessels for hire, commercial air operators, or private carriers, the Bureau of Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation, the Division of Boating and Waterways in the Department of Parks and Recreation, the Department of Motor Vehicles, or the local jurisdiction, respectively, to substitute for the commission in the action or proceeding. Because this bill would impose additional duties on local jurisdictions, the bill would impose a state-mandated local program.

(12) This bill would incorporate additional changes to Section 205 of the Business and Professions Code, as amended by Section 1 of Chapter 800 of the Statutes of 2016, proposed by AB 1705 to be operative only if this bill and AB 1705 are enacted and this bill is enacted last.

(13) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Digest Key

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

This act shall be known, and may be cited, as the California Public Utilities Commission Governance, Accountability, Training, and Transportation Oversight Act of 2017.

SEC. 2.

(a) The Legislature finds and declares that in his September 29, 2016, signing message for Senate Bills 62, 215, 512, and 661 (Chapters 806, 807, 808, and 809 of the Statutes of 2016), Governor Edmund G. Brown directed his administration to work with the Public Utilities Commission to develop a reorganization plan to transfer those duties and responsibilities of the commission over transportation-related entities that will be better performed by departments within the state’s Transportation Agency.

(b) The Legislature finds and declares that this act represents the latest effort in an ongoing review and reorganization of the Public
Utilities Commission by the Governor and the Legislature, so that the current and future services provided by the commission, and all of its future activities, will be timely, efficient, and effective.

SEC. 3.

(a) The receiving departments or local jurisdictions described in Sections 8, 9, 29, 32, 35, 37, 39, and 40 of this act succeed to and are vested with all the authority, duties, powers, purposes, functions, responsibilities, and jurisdiction of the Public Utilities Commission, its predecessors, and its officers for the purposes of those transfers of authority. The receiving bureau and department described in
Sections 8 and 40 of this act may prescribe reasonable rules and regulations as may be necessary to implement, administer, and enforce their respective duties prescribed in this act in addition to rules and regulations specifically authorized by this act or any other provision of law.

(b) The transfers of jurisdiction in this act shall be effective on July 1, 2018. The commission, receiving departments, and local jurisdictions may take administrative actions before July 1, 2018, to prepare for the
transfer.

(c) Regulations adopted, orders issued, and all other administrative actions taken by the Public Utilities Commission or any of its predecessors that are in effect immediately before July 1, 2018, shall remain in effect and are fully enforceable unless they are readopted, amended, or repealed by the receiving department or local jurisdiction or they expire by their own terms. Any other administrative actions, including licenses, permits, or other authorizations issued, adopted, prescribed, taken, or performed by, or on behalf of, the Public Utilities Commission or its officers in the administration of a program or the performance of a duty, responsibility, or authorization transferred to a receiving department or local jurisdiction pursuant to Section 8, 9,
29, 32, 35, 37, 39, or 40 of this act shall remain in effect and shall be deemed to be an action of the receiving department or local jurisdiction unless the receiving department or local jurisdiction determines otherwise.

(d) Any action or proceeding by or against the Public Utilities Commission or any of its predecessors, including any officer or employee named in an official capacity, pertaining to a matter as to which jurisdiction transferred pursuant to Section 8, 9, 29, 32, 35, 37, 39, or 40 of this act, shall not abate, but shall continue in the name of the receiving department or local jurisdiction. The receiving department or local jurisdiction shall be substituted for the Public Utilities Commission or any of its predecessors, including any officer or employee named in an official capacity, by the court or agency where the action or proceeding is pending. The substitution shall not in any way affect the rights of the parties to the action or proceeding.

(e) On or after July 1, 2018, the unexpended balance of all funds appropriated to and available for use by the Public Utilities Commission or any of its predecessors in carrying out any functions transferred to the receiving departments
pursuant to Section 8, 9, or 40 of this act are hereby reappropriated and available for use by the appropriate receiving departments in connection with the function affected by the transfer. The receiving departments shall use those moneys only for the purposes for which the original appropriations were made.

(f) All books, documents, data, records, and property of the Public Utilities Commission pertaining to a function transferred pursuant to Section 8, 9, 29, 32, 35, 37, 39, or 40
of this act shall be transferred to the appropriate receiving department or local jurisdiction.

(g) The status, positions, and rights of persons affected by the transfers of jurisdiction pursuant to Section 8, 9, 29, 32, 35, 37, 39, or 40 of this act shall continue to be retained by them pursuant to the State Civil Service Act (Part 2 (commencing with Section 18500) of Division 5 of Title 2 of the Government Code) except as to positions the duties of which are vested in a position exempt from civil service.

SEC. 4.

Section 205 of the Business and Professions Code, as added by Section 2 of Chapter 395 of the Statutes of 2015, is repealed.

SEC. 5.

Section 205 of the Business and Professions Code, as added by Section 2 of Chapter 428 of the Statutes of 2015, is repealed.

SEC. 6.

Section 205 of the Business and Professions Code, as amended by Section 1 of Chapter 800 of the Statutes of 2016, is amended to read:

205.

(a) There is in the State Treasury the Professions and Vocations Fund. The fund shall consist of the following special funds:

(b) For accounting and recordkeeping purposes, the Professions and Vocations Fund shall be deemed to be a single special
fund, and each of the several special funds therein shall constitute and be deemed to be a separate account in the Professions and Vocations Fund. Each account or fund shall be available for expenditure only for the purposes as are now or may hereafter be provided by law.

(c) This section shall become operative on July 1, 2018.

SEC. 6.5.

Section 205 of the Business and Professions Code, as amended by Section 1 of Chapter 800 of the Statutes of 2016, is amended to read:

205.

(a) There is in the State Treasury the Professions and Vocations Fund. The fund shall consist of the following special funds:

(b) For accounting and recordkeeping purposes, the Professions and Vocations Fund shall be deemed to be a single special fund, and each of the several special funds therein shall constitute and be deemed to be a separate account in the Professions and Vocations Fund. Each account or fund
shall be available for expenditure only for the purposes as are now or may hereafter be provided by law.

(c) This section shall become operative on July 1, 2018.

SEC. 7.

Section 9810 of the Business and Professions Code is amended to read:

9810.

(a) (1) There is in the Department of Consumer Affairs a Bureau of Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation, under the supervision and control of the director. The director shall administer and enforce the provisions of this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8.

(2) There is a Division of Household
Movers within the bureau for purposes of administering Chapter 3.1 (commencing with Section 19225) of Division 8. The Division of Household Movers shall be overseen by the chief of the bureau.

(b) The Governor shall appoint, subject to confirmation by the Senate, a chief of the bureau at a salary to be fixed and determined by the director with the approval of the Director of Finance. The chief shall serve under the direction and supervision of the director and at the pleasure of the Governor.

(c) Every power granted to or duty imposed upon the director under this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8 may be exercised or performed in the name of the director by a deputy or
assistant director or by the chief, subject to conditions and limitations that the director may prescribe.

(d) Whenever the laws of this state refer to the Bureau of Electronic Repair Dealer Registration or the Bureau of Electronic and Appliance Repair, the reference shall be construed to be to the Bureau of Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation.

(e) Notwithstanding any other law, the powers and duties of the Bureau of Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation, as set forth in this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8, shall be subject to review by the appropriate policy committees of the Legislature. The review shall be performed as
if this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8 were scheduled to be repealed on January 1, 2019.

SEC. 8.

Chapter 3.1 (commencing with Section 19225) is added to Division 8 of the Business and Professions Code, to read:

CHAPTER
3.1. Household Movers Act

Article
1. General Provisions and Definitions

19225.

This chapter may be cited as the “Household Movers Act.”

19225.5.

For purposes of this chapter, unless the context otherwise requires, the following provisions shall apply:

(a) “Broker” means a person engaged by others in the act of arranging, for compensation, the intrastate transportation of used household goods by a motor vehicle over the highways of this state for, or on behalf of, a shipper, a consignor, or a consignee.

(b) “Bureau” refers to the Bureau of Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation, as established in Section 9810.

(c) “Chief” refers to the chief of the bureau.

(d) “Corporation” includes a corporation, a company, an association, and a joint stock association.

(h) “Household
mover” includes every corporation or person, their lessees, trustee, receivers, or trustees appointed by any court whatsoever, engaged in the permitted or unpermitted transportation for compensation or hire as a business by means of a motor vehicle or motor vehicles being used in the transportation of used household goods and personal effects over any public highway in this state. A broker, as defined in subdivision (a), shall be considered a household mover. The Legislature intends “household mover” to have the same meaning as “household goods carrier” in former Section 5109 of the Public Utilities Code, as that section
read on June 30, 2018.

(i) “Inspector” refers to an inspector either employed by, or under contract to, the bureau.

(j) “Motor vehicle” means every motor truck, tractor, or other self-propelled vehicle used for transportation of property over the public highways, other than upon fixed rails or tracks, and any trailer, semitrailer, dolly, or other vehicle drawn thereby.

(k) “Owner,” with respect to a motor vehicle used in the transportation of property for compensation by a household mover, means the corporation
or person who is registered with the
Department of Motor Vehicles as the owner of the vehicle, or who has a legal right to possession of the vehicle pursuant to a lease or rental agreement.

(l) “Person” includes an individual, a firm, or a copartnership.

(m) “Public highway” includes every public street, road, or highway in this state.

19225.7.

In construing and enforcing the provisions of this chapter relating to citations and discipline, the act, omission, or failure of any officer, agent, or employee of any person or corporation, acting within the scope of his or her official duties or employment, is the act, omission, or failure of the employing person or corporation.

19225.9.

Every power granted to or duty imposed upon the director under this chapter may be exercised or performed in the name of the director by a deputy or assistant director or by the chief, subject to conditions and limitations that the director may prescribe.

19226.

The regulation of the transportation of used household goods and personal effects in a motor vehicle or motor vehicles over any public highway in this state shall be exclusively as provided in this chapter. Any provision of the Public Utilities Code in conflict with the provisions of this chapter does not apply to a household mover.

19227.

The transportation of used household goods and personal effects in any truck or trailer for compensation over any public highway in this state is a highly specialized type of truck transportation. This chapter is enacted for the limited purpose of providing necessary regulation for this specialized type of truck transportation only, and is not to be construed for any purpose as a precedent for the extension of that regulation to any other type of truck transportation not presently so restricted.

19228.

(a) Notwithstanding any other law, and until the time the director adopts regulations implementing this chapter, powers granted to, or duties imposed on, the Public Utilities Commission pursuant to the former Chapter 7 (commencing with Section 5101) of Division 2 of the Public Utilities Code are transferred to, and may be exercised by, the director in administering this chapter.

(b) All rules, regulations, general orders, forms, and Maximum Rate Tariff 4, as most recently amended
as of July 1, 2018, by the
Public Utilities Commission, adopted, administered, or enforced by the Public Utilities Commission for purposes of implementing and administering the former Chapter 7 (commencing with Section 5101) of Division 2 of the Public Utilities Code, that are in effect immediately preceding July 1, 2018, shall remain in effect and shall be administered and enforced by the director, until the operative date of regulations adopted by the director to implement this chapter.

(c) Until the operative date of regulations implementing this chapter, household
movers shall observe the rules, regulations, general orders, and Maximum Rate Tariff 4, as most recently amended as of July 1, 2018, by the Public Utilities Commission, that are administered and enforced by the director pursuant to this chapter. A violation of those rules, regulations,
general orders, or tariff may be grounds for discipline.

19229.

(a) The Household Movers Fund is hereby established within the State Treasury. Moneys in the fund shall be used, upon appropriation by the Legislature, by the bureau for the administration of this chapter.

(b) Except as otherwise provided in this chapter, all
moneys, including fines or penalties imposed under this chapter, collected pursuant to this chapter shall be deposited into the fund.

(c) Notwithstanding subdivision (a) of Section 205, the Household Movers
Fund is a special fund within the Professions and Vocations Fund and is subject to subdivision (b) of Section 205.

19229.1.

(a) The use of the public highways for the transportation of used household goods and personal effects for compensation is a business affected with a public interest. It is the purpose of this chapter to do all of the following:

(1) Preserve for the public the full benefit and use of public highways consistent with the needs of commerce without unnecessary congestion or wear and tear upon those highways.

(2) Secure to the people just, reasonable, and nondiscriminatory rates for transportation by
household movers operating upon the highways.

(3) Secure full and unrestricted flow of traffic by motor carriers over the highways that will adequately meet reasonable public demands by providing for the regulation of rates of all household movers so that adequate and dependable service by all necessary household movers is maintained and the full use of the highways is preserved to the public.

(4) Promote fair dealing and ethical conduct in the rendition of services involving or incident to the transportation of household goods and personal effects.

(b) To achieve the purposes of subdivision (a), the bureau shall do all of the following:

(1) Prioritize the timely processing of applications and hold application workshops for potential applicants around the state.

(5) Implement electronic case tracking of complaints and their disposition.

(6) Implement a process for appropriate and timely enforcement against illegally operating household movers, including performing staff-driven investigations and enforcement through sting operations and other forms of presence in the field.

(7) Maintain relationships with, and implement
outreach and education programs to, local law enforcement, district attorneys, and airports, and coordinate with law enforcement agencies pursuant to subdivision (d) of Section 19283.1.

(8) Meet with household mover trade associations at least annually.

(9) Implement a consolidated case tracking system that integrates each of the transportation program core functions and data collection, administrative compliance details, complaints, and investigations.

19233.

This chapter shall not be construed as a regulation of commerce with foreign nations or among the several states, except insofar as those regulations are not prohibited under the provisions of the United States Constitution and the acts of the Congress of the United States.

19234.

The director, in accordance with the State Civil Service Act and Section 159.5, may appoint and fix the compensation of clerical, inspection, investigation, and auditing personnel, as well as a deputy chief, as may be necessary to carry out the provisions of this chapter. All such personnel shall perform their respective duties under the supervision and the direction of the chief.

19234.1.

Protection of the public shall be the highest priority for the bureau in exercising its licensing, regulatory, and disciplinary functions under this chapter. Whenever the protection of the public is inconsistent with other interests sought to be promoted, the protection of the public shall be paramount.

Article
2. Regulation of Household Movers

19235.

A household mover shall not engage in the business of transportation of used household goods and personal effects for compensation by motor vehicle over any public highway in this state, except in accordance with the provisions of this chapter, which is enacted under the power of the state to regulate the use of public highways.

19236.

(a) Each household mover shall display on each vehicle operated by it an identification symbol in the form and in accordance with rules and regulations prescribed by the bureau. The identifying symbols displayed by household movers subject to the Interstate Commerce Commission Order Ex Parte No. MC-41, Identification of Motor Carrier Vehicles, November 17, 1954, effective
January 3, 1955, shall serve in lieu of the display requirements of this section, if the identifying symbols have been recorded by the household mover with the bureau.

(b) For motor vehicles first registered in this state on or after January 1, 1985, the identifying symbol shall be displayed on both the left and right doors of the cab of the vehicle.

19237.

(a) A household mover shall not engage, or attempt to engage, in the business of the transportation of used household goods and personal effects by motor vehicle over any public highway in this state, including by any means or media, advertising, soliciting, offering, arranging as a broker, or entering into an agreement regarding the transportation of used household goods and personal effects, unless both of the following are satisfied:

(1) For transportation of household goods and
personal effects entirely within this state, there is in force a permit issued by the bureau authorizing those operations. Permits issued by the Public Utilities Commission pursuant to the former Chapter 7 (commencing with Section 5101) of Division 2 of the Public Utilities Code, that are valid and effective on the operative date of this chapter, shall remain in effect, subject to the provisions of this chapter, for a period of not more than two years after the operative date of this chapter, or until the time the bureau issues, reissues, renews, suspends, revokes, or otherwise alters or amends the permit, whichever occurs earlier.

(2) For transportation of household goods and personal effects from this state to another state or from another state to this state, there is in force a valid operating authority issued by the Federal Motor
Carrier Safety Administration.

(b) A household mover that engages, or attempts to engage, in the business of the transportation of used household goods and personal effects in violation of subdivision (a) shall not enforce any security interest or bring or maintain any action in law or equity to recover any money or property or obtain any other relief from any consignor, consignee, or owner of household goods or personal effects in connection with an agreement to transport, or the transportation of, household goods and personal effects or any related services. A person who utilizes the services of a household
mover operating in violation of subdivision (a) may bring an action in any court of competent jurisdiction in this state to recover all compensation paid to that household mover.

(c) The operation of a motor vehicle used in the business of transporting household goods and personal effects by a household mover
that does not possess a valid permit or operating authority, as required by subdivision (a), constitutes a public nuisance. Any peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, may remove any motor vehicle located within the territorial
limits in which the officer may act, when the vehicle is found upon a highway and is being used in a manner constituting a public nuisance. At the request of the bureau, the Attorney General, or a district attorney, city attorney, or county counsel, the law enforcement agency may impound the vehicle for a period not to exceed 72 hours to enable the requesting agency to abate the public nuisance, to obtain an order from the superior court of the county in which the vehicle has been impounded to prevent the use of the motor vehicle in violation of law, and to obtain any other remedy available under law as permitted by Section 19282.

(d) Any person having possession or control of used household goods or personal effects, who knows, or through the exercise of reasonable care should know, that a household
mover transported those household goods or personal effects in violation of subdivision (a), shall release the household goods and personal effects to the consignor or consignee, as defined in Section 19245, upon the request of the consignor or consignee. If that person fails to release the household goods and personal effects, any peace officer, as defined in subdivision (c), may take custody of the household goods and personal effects and release them to the consignor or consignee.

19238.

(a) To obtain an original permit, an applicant shall submit to the bureau an application in writing, on a form containing information prescribed by the bureau, which is verified under oath, and accompanied by proof of service upon those interested parties, as required by the bureau. The bureau shall require the applicant to attest in the application to facts demonstrating that the applicant is not barred by law or court order from acting as a household mover.

(b) The
application shall be accompanied by the fee fixed pursuant to this chapter.

19239.

(a) Before a permit is issued, the bureau shall require the applicant to establish ability and reasonable financial responsibility to initiate the proposed operations. The bureau shall require the applicant to establish his or her knowledge and ability to engage in business as a household mover by examination. The examination may be written or oral, or in the form of a demonstration of skill, or any combination of these, and any investigation of character, experience, and any tests of technical knowledge and manual skill that the bureau determines
to be appropriate may be employed. In any examination, the qualification of the applicant shall be determined by an appraisal made by a member of the bureau’s staff. The criteria used by the bureau staff in making the required appraisal to determine whether the applicant has met the qualifications shall be established by the bureau by rule or regulation, in accordance with the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. An applicant who has been determined to be unqualified may establish his or her qualifications through a subsequent examination, but no subsequent examination shall be taken prior to 30 days from the date when the applicant was found to be unqualified. If the staff member determines that the applicant is not qualified and denies the application, the bureau shall notify the applicant in writing. Within 30 days
of service of the notice, the applicant may file a written request with the bureau for a hearing on the denial. Upon receipt of a timely filed request, the bureau shall request that the matter be set for a hearing. The hearing shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director shall have all the powers granted therein. If the staff member determines that the applicant is qualified, the bureau may issue a permit without a hearing.

(b) An applicant may qualify in one of the following ways:

(1) If an individual, he or she may qualify by personal examination or by examination of his or her responsible managing employee.

(2) If a copartnership or corporation, or any other type of business organization, it may qualify by examination of the responsible managing officer, an employee who works at least 32 hours per week, or a partner of the applicant firm.

(c) If the individual qualified by examination ceases to be connected with the permitholder, the permitholder shall notify the bureau in writing within 30 days after the cessation. If notice is given, the permit shall remain in force a reasonable length of time in order that another representative of the applicant may be qualified before the bureau. If the permitholder fails to notify the bureau of the cessation within a 30-day period, at the end of that period the permit shall be automatically suspended.

(d) Each applicant for a permit shall
electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice for each owner, partner, officer, and director as a prerequisite to the issuance of a permit to operate as a household mover. The fingerprint images and related information shall be submitted for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and arrests, and information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her own recognizance, pending trial or appeal.

(1) The Department of Justice shall provide a response to the bureau pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.

(2) The bureau shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.

(3) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.

(e) The bureau may require, as a precondition to the issuance of a permit, the procurement of a performance bond sufficient to facilitate the collection of fines, penalties, and restitution related to
enforcement actions that can be taken against the applicant.

(f) The bureau may refuse to issue a permit if it is shown that an applicant or an officer, director, partner, or associate of an applicant has committed any act constituting dishonesty or fraud; committed any act that, if committed by a permitholder, would be grounds for a suspension or revocation of the permit; misrepresented any material fact on the application; or, was convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession, except that if the bureau determines that the applicant is otherwise suitable to be issued a permit, and
granting the permit would not compromise public safety, the bureau shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant, and shall evaluate the suitability of the applicant to be issued a permit based on the evidence found through the review.

(g) The bureau shall issue a permit only to those applicants who it finds have demonstrated that they possess sufficient knowledge, ability, integrity, and financial resources and responsibility to perform the service within the scope of their application.

(h) A permit may not be issued
unless it has been shown that the applicant meets one of the following residence requirements:

(1) For an individual, the applicant shall have resided in the State of California for not less than 90 days next preceding the filing of the application.

(2) For a partnership, the partner having the largest percentage interest in the partnership shall have resided in the State of California continuously for not less than 90 days next preceding the filing of the application.

(3) For a corporation, the applicant shall be a domestic corporation or shall be qualified to transact business in the State of California as a foreign corporation at the time of filing the application.

(i) The bureau shall prescribe, amend, and repeal rules in accordance with law for the administration of this section.

(j) If the bureau denies an application, the bureau shall notify the applicant in writing. Within 30 days of service of the notice, the applicant may file a written request with the bureau for a hearing on the denial. Upon receipt of a timely filed request, the bureau shall request that the matter be set for hearing. The hearing shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director shall have all the powers granted therein.

19239.1.

(a) Except as provided for in subdivision (b), every household mover, as a condition precedent to the issuance, reinstatement, reactivation, renewal, or continued maintenance of a permit, shall have on file with the bureau a current and valid Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance in the applicant’s or
permitholder’s business name. A Certificate of Workers’ Compensation Insurance shall be issued and filed, electronically or otherwise, by an insurer duly licensed to write workers’ compensation insurance in this state. If reciprocity conditions exist, as provided in Section 3600.5 of the Labor Code, the bureau shall require the information deemed necessary to ensure compliance with this section.

(b) This section does not apply to an applicant or permitholder who has no employees, provided that the applicant or
permitholder files a statement, under penalty of perjury, stating that, in its operations as a household mover, it does not employ any person in any manner so as to become subject to the workers’ compensation laws of this state.

(c) The workers’ compensation coverage certified to under subdivision (a) shall be effective until canceled. Cancellation shall require 30 days’ advance notice. A workers’ compensation insurer shall also report to the bureau a
permitholder
whose workers’ compensation insurance policy is canceled by the insurer if all of the following conditions are met:

(1) The insurer has completed a premium audit or investigation.

(2) A material misrepresentation has been made by the insured that results in financial harm to the insurer.

(3) No reimbursement has been paid by the insured to the insurer.

(d) If, after filing the statement described in subdivision (b), the household mover becomes subject to the workers’
compensation laws of this state, the household mover shall promptly notify the bureau that the household mover is withdrawing its statement under subdivision (b), and shall simultaneously file the certificate described in subdivision (a).

(e) The insurer, including the State Compensation Insurance Fund, shall report to the bureau the following information for any policy required under this section: name, license number, policy number, and dates that coverage is scheduled to commence and lapse,
and cancellation date, if applicable.

19239.2.

(a) The bureau shall accept a certificate required by Section 19239.1 as of the effective date shown on the certificate, if the certificate is received by the bureau within 90 days after that date, and shall reinstate the permit to which the certificate pertains, if otherwise eligible, retroactive to the effective date of the certificate.

(b) Notwithstanding subdivision (a), the bureau shall accept the certificate as of the effective date shown on the certificate, even if the certificate
is not received by the bureau within 90 days after that date, upon a showing by the permitholder, on a form acceptable to the bureau, that the failure to have a certificate on file was due to circumstances beyond the control of the permitholder. The bureau shall reinstate the permit to which the certificate pertains, if otherwise eligible, retroactive to the effective date of
the certificate.

19239.3.

The bureau shall not issue or authorize the transfer of any permit under this chapter to any person or corporation against whom a final judgment has been entered and whose name has been transmitted to the bureau pursuant to Section 3716.4 of the Labor Code, unless that judgment has been satisfied or has been discharged in accordance with the bankruptcy laws of the United States.

19239.4.

(a) The failure of a permitholder to obtain or maintain workers’ compensation insurance coverage, if required under this chapter, shall result in the suspension of the permit by operation of law in accordance with the provisions of this section, but this suspension shall not affect, alter, or limit the status of the
permitholder as an employer for purposes of Section 3716 of the Labor Code.

(b) The permit suspension imposed by this section is effective upon the earlier of either of the following:

(1) On the date that the relevant workers’ compensation insurance coverage lapses.

(2) On the date that workers’ compensation coverage is required to be obtained.

(c) A
permitholder who is subject to suspension under paragraph (1) of subdivision (b) shall be provided a notice by the bureau that includes all of the following:

(1) The reason for the permit suspension and the effective date.

(2) A statement informing the permitholder that a pending suspension will be posted to the
permit record for not more than 45 days prior to the posting of any permit suspension periods required under this article.

(3) The procedures required to reinstate the permit.

(d) Reinstatement may be made at any time following the suspension by showing proof of compliance as specified in Sections 19239.1 and 19239.3.

(e) With respect to an
unpermitted individual acting in the capacity of a household mover who is not exempt from the provisions of this chapter, a citation may be issued by the bureau for failure to comply with this article and to maintain workers’ compensation insurance.

19240.

(a) Each original application for issuance of a permit under this chapter shall be accompanied by a fee of five hundred dollars ($500). The holder of a permit issued by the Public Utilities Commission pursuant to former Chapter 7 (commencing with Section 5101) of Division 2 of the Public Utilities Code that is valid and effective as of July 1, 2018, shall not be required to submit a new application fee until the time the permitholder submits a new application.

(b) An application for transfer of a permit shall be accompanied by a fee of one hundred fifty dollars ($150).

(c) The fees described in this section shall be superseded by the fees adopted by the bureau on or before January 1, 2023, pursuant to Section 19288.

(d) All fees paid to the bureau under this chapter shall be deposited in the fund.

19241.

(a) A household mover, under its permit, may also transport used office, store, and institution furniture and fixtures. The bureau shall not regulate the service, routes, or prices charged for the transportation of used office, store, and institution furniture and fixtures by a household mover. The bureau shall do nothing under this section that is in conflict
with federal law as contained in Section 14501 of Title 49 of the United States Code.

(b) If a household mover elects to transport used office, store, and institution furniture and fixtures under its household mover permit, all of the following apply:

(1) A permit is not needed from the Department of Motor Vehicles under the Motor Carriers of Property Permit Act (Division 14.85 (commencing with Section 34600) of
the Vehicle Code) to conduct that transportation.

(2) The transportation is subject to the bureau’s safety and insurance requirements, except that the cargo insurance requirements of subdivision (c) of Section 19248 shall not apply.

(3) The household mover shall pay the applicable fees specified in this chapter.

(c) To exercise the
election pursuant to this section, a household mover shall notify the bureau of the election or the revocation of that election by filing a notice with the bureau in the manner and on the form prescribed by the bureau. If a household mover does not elect to be subject to the provisions of this section or revokes a prior election to do so, the household mover
shall comply with the provisions of the Motor Carriers of Property Permit Act when transporting used office, store, and institution furniture and fixtures.

19242.

The bureau shall establish rules and regulations governing the notification to shippers of any delay in the delivery of goods beyond the date agreed to by the household mover and the shipper, if any, at the time the service was undertaken. All household movers shall observe such rules and regulations and the failure to do so is unlawful.

19243.

(a) The bureau may establish rules for the performance of any service of the character furnished or supplied by household movers. Every household mover shall observe these rules. Failure to do so is unlawful. A violation of the chapter or the bureau’s rules may be grounds for discipline.

(b) The
bureau shall establish rules to authorize an electronic form of documents required by this chapter, consistent with the purpose of the document and if the household mover and the customer agree to the use of an electronic form.

19244.

It is unlawful for the owner of a household mover motor vehicle employing or otherwise directing the driver of the vehicle to permit the operation of the vehicle upon any public highway for compensation without first having obtained from the bureau a permit pursuant to this chapter or without first having complied with the vehicle identification requirements of Section 19236 or with the accident liability protection requirements of Section 19248.

19245.

(a) Except as provided in Section 19237, a household mover in compliance with this chapter has a carrier’s lien on used household goods and personal effects to secure payment of the amount specified in subdivision (b) for transportation and additional services ordered by the consignor. A carrier’s lien does not attach to food, medicine, or medical
devices, items used to treat or assist an individual with a disability, or items used for the care of a minor child.

(b) (1) The amount secured by the carrier’s lien is the maximum total dollar amount for the transportation of the household goods and personal effects and any additional services, including any bona fide change order permitted under the rules and regulations administered by the bureau, that is set forth clearly and conspicuously in writing adjacent to the space reserved for the signature of the consignor and that is agreed to by the consignor before any goods or personal effects are moved from their location or any additional services are performed.

(2) The dollar amount for the transportation of household goods and personal effects and additional services may not be preprinted on any form, shall be just and reasonable, and shall be established in good faith by the household mover based on the specific circumstances of the services to be performed.

(c) Upon tender to the household mover of the amount specified in subdivision (b), the carrier’s
lien is extinguished, and the household mover shall release all household goods and personal effects to the consignee.

(d) A household mover may enforce the carrier’s lien on household goods and personal effects provided in this section except as to any goods that the
household mover voluntarily delivers or unjustifiably refuses to deliver. The carrier’s lien shall be enforced in the manner provided in this section and Chapter 6 (commencing with Section 9601) of Division 9 of the Commercial Code for the enforcement of a security interest in consumer goods in a consumer transaction. To the extent of any conflict between this section and that Chapter 6, this section shall prevail. Every act required in connection with enforcing the carrier’s lien shall be performed in good faith and in a commercially reasonable manner.

(e) The household
mover shall provide a notification of disposition at least 30 days prior to any disposition to each consignor and consignee by personal delivery, or in the alternative, by first-class and certified mail, postage prepaid and return receipt requested, at the address last known by the household mover and at the destination address, and by electronic mail if an electronic mail address is known to the household mover. If any of the required recipients of notice are married to each other, and according to the
household mover’s records, reside at the same address, one notice addressed to both shall be sufficient. Within 14 days after a disposition, the household mover shall provide to the consignors any surplus funds from the disposition and an accounting, without charge, of the proceeds of the disposition.

(f) Any person having possession or control of household goods or personal effects, who knows, or through the exercise of reasonable care should know, that the household
mover
has been tendered the amount specified in subdivision (b), shall release the household goods and personal effects to the consignor or consignee, upon the request of the consignor or consignee. If the person fails to release the household goods and personal effects to the consignor or consignee, any peace officer, as defined in subdivision (c) of Section 19237, may take custody of the household goods and personal effects and release them to the consignor or consignee.

(g) This section shall not affect any rights, if any, of a household
mover to claim additional amounts, on an unsecured basis, or of a consignor or consignee to make or contest any claim, and tender of payment of the amount specified in subdivision (b) is
not a waiver of claims by the consignor or consignee.

(h) Any person injured by a violation of this section may bring an action for the recovery of the greater of one thousand dollars ($1,000) or actual damages, injunctive or other equitable relief, reasonable attorney’s fees and costs, and exemplary damages of not less than three times the amount of actual damages for a willful violation.

(i) Any waiver of this section shall be void and unenforceable.

(j) Notwithstanding any other law, this section exclusively establishes and provides for a carrier’s lien
of a household mover on used household goods and personal effects to secure payment for transportation and additional services ordered by the consignor.

(k) For purposes of this section, the following terms have the following meanings:

(1) “Consignor” means the person named in the bill of lading as the person from whom the household goods and personal effects have been received for shipment and that person’s agent.

(2) “Consignee” means the person named in the bill of lading to whom or to whose order the household mover
is required to make delivery as provided in the bill of lading and that person’s agent.

(l) Any document required by this section may be in an electronic form, if agreed upon by the household mover and the customer.

19246.

(a) For purposes of this section, the following terms have the following meanings:

(1) “Consignor” means the person named in the bill of lading as the person from whom the household goods and personal effects have been received for shipment and that person’s agent.

(2) “Consignee” means the person named in the bill of lading to whom or to whose order the household mover is required to make delivery as provided in the bill of
lading and that person’s agent.

(b) Any household mover engaged in the business of transportation of used household goods and personal effects by motor vehicle over any public highway in this state shall provide each consignor with a completed copy of the notice set forth in this section. The notice shall be printed in at least 12-point type, except the title and first two paragraphs which shall be printed in boldface type, and provided to each consignor at least three days prior to the date scheduled for the transportation of household goods or personal effects. If the consignor requests services on a date that is less than three days before the scheduled
date for transportation of the household goods or personal effects, the household mover shall provide the notice as soon as practicable, but in no event may the household mover commence any services until the consignor has signed and received a signed copy of the notice. The household mover shall obtain sufficient information from the consignor to fill out the
form and shall include the correct maximum amount and a sufficient description of services that will be performed. The household mover shall retain a copy of the notice, signed by the consignor, for at
least three years from the date the notice was signed by the consignor.

(c) Any waiver of the requirements of this section is void and unenforceable.

(d) For transportation services provided by a household mover, the “Not To Exceed” amount set forth in the notice and the agreement between the household mover and the consignor shall be the maximum total dollar amount for which the consignor may be liable for the
transportation of household goods and personal effects and any additional services ordered by the consignor, including any bona fide change order permitted under the rules and regulations administered by the bureau, and agreed to by the consignor before any goods or personal effects are moved from their location or any other services are performed.

(e) A household mover may provide the notice set forth in this section either as a separate document or by including it as the centerfold of the informational booklet that the household
mover is required to provide the consignor under the rules and regulations administered by the bureau. If the household mover provides the notice as part of the informational booklet, the booklet shall contain a tab that extends beyond the edge of the booklet at the place where the notice is included. The statement “Important Notice” shall be printed on the tab in at least 12-point boldface type. In addition, the statement “Customer Must Read And Sign The Important Notice In The Middle Of This Booklet Before A Move Can Begin” shall be set forth in 14-point boldface type on the front cover of the booklet.

(f) The
notice provided the consignor shall be in the following form:

“IMPORTANT NOTICE ABOUT YOUR MOVE

“IT IS VERY IMPORTANT THAT YOU ONLY AGREE TO A “NOT TO EXCEED” AMOUNT THAT YOU THINK IS A PROPER AND REASONABLE FEE FOR THE SERVICES YOU ARE REQUESTING. THE “NOT TO EXCEED” AMOUNT THIS MOVER IS REQUESTING IS $____________________ TO PERFORM THE FOLLOWING SERVICES:___________________________________________________________________________________________________________________________________________________________________________________.

“IF YOU DO NOT AGREE TO THE “NOT TO EXCEED” AMOUNT
LISTED OR THE DESCRIPTION OF SERVICES, YOU HAVE THE RIGHT TO REFUSE THE MOVER’S SERVICE AT NO CHARGE TO YOU.“If you request additional or different services at the time of the move, you may be asked to complete a Change Order which will set forth your agreement to pay for additional fees for those newly requested services. If you agree to the additional charges on that Change Order, those charges may be added to the “NOT TO EXCEED” amount set forth above. If you do not agree to the amounts listed in the Change Order, you should not sign it and may refuse the mover’s services.

“A mover cannot refuse to release your goods once you have paid the “NOT TO EXCEED” amount for the transportation of your goods and personal effects and any additional services that you have agreed to in writing. The “NOT TO EXCEED” amount must be
reasonable.

“A mover cannot, under any circumstances, withhold food, medicine, medical devices, items to treat or assist a disabled person, or items used for care of a minor child. A mover without a valid permit has no right to withhold your goods for any reason, including claims that you have not adequately paid for services rendered.

“For additional information or to confirm whether a mover has a valid permit issued by the Division of Household
Movers of the Bureau of Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation, please call the Bureau toll free at:

_____
Insert toll-free number
_____
.

“I have completed this form and provided the consumer (shipper) with a copy of this notice.“Signed ________________________ Dated __________________

“I have been
provided with a copy of this form.“Signed ________________________ Dated _________________”

(g) Any document required by this section may be in an electronic form, if agreed upon by the household mover and the customer.

19247.

Every household mover shall add a prominent link to its Internet Web site that immediately directs all consumers to the bureau’s Internet Web site.

Article
3. Accident Liability Protection

19248.

(a) The bureau, in granting permits pursuant to this chapter, shall require a household mover to procure, and continue in effect during the life of the permit, adequate protection against liability imposed by law upon the
household mover for the payment of damages for personal bodily injuries, including death resulting therefrom, and property damage in the following amounts:

(1) Not less than two hundred fifty thousand dollars ($250,000) on account of bodily injuries to or death of one person.

(2) Not less than five hundred thousand dollars ($500,000) on account of bodily injuries to or death of more than one person as a result of any one accident. The recovery of each person is subject to the limitation contained in paragraph (1).

(3) Not less than one hundred thousand dollars ($100,000) for one accident resulting in damage to or destruction of property, other than property being transported by the
household mover
for any shipper or consignee, whether it is the property of one or more than one claimant.

(4) Not less than six hundred thousand dollars ($600,000) on account of bodily injuries to or death of one or more persons and damage to or destruction of property, other than property being transported by the household mover for any shipper or consignee, whether it is the property of one or more than one claimant, in any one accident.

(b) The bureau may increase the minimum level of public liability and property damage protection required by this section if necessary to provide adequate
protection.

(c) The bureau shall require all household movers to procure and continue in effect during the life of the permit cargo insurance in the amount of twenty thousand dollars ($20,000). However, upon a showing before the bureau by a household mover that a lesser amount of cargo insurance adequately protects the public, and a finding by the bureau to that effect, the bureau may authorize the
household mover to procure and continue in effect during the life of the permit the lesser amount of insurance.

19249.

The protection required under this article shall be evidenced by the deposit of any of the following with the bureau covering each vehicle used or to be used under the permit applied for:

(a) A policy of insurance, issued by a company licensed to write such insurance in this state, or by nonadmitted insurers subject to Section 1763 of the Insurance Code, if the policies meet the rules and regulations administered by the bureau.

(b) A bond of a surety company licensed to write surety bonds in the state.

(c) Any evidence of the qualification of the household
mover
as a self-insurer as may be authorized by the bureau.

19250.

With the consent of the bureau a copy of an insurance policy, certified by the company issuing it to be a true copy of the original policy, or a photostatic copy of the policy, or an abstract of the provisions of the policy, or a certificate of insurance issued by the company issuing the policy, may be filed with the bureau in lieu of the original or a duplicate or counterpart of the policy.

19251.

The protection against liability shall be continued in effect during the active life of the permit. The policy of insurance or surety bond shall not be cancelable on less than 30 days’ written notice to the bureau.

19252.

The bureau may establish such rules and regulations as are necessary to enforce this article.

Article
4. Rates

19253.

(a) The bureau shall establish or approve maximum or minimum or maximum and minimum rates to be charged by household movers for the transportation of used household goods and personal effects and for accessorial service performed in connection with the transportation.

(b) In establishing or approving rates, the bureau shall account for the cost of all transportation service performed or to be performed, for any accessorial service performed or to be performed in connection
with transportation, the value of the commodity transported, and the value of the equipment, facilities, and personnel reasonably necessary to perform the service. In determining rates, the bureau shall conduct a rate study and provide an opportunity for public comment. The bureau shall determine final rates based on the study and comments received during public review.

(c) The bureau shall establish or approve no minimum rate for household movers unless it finds that the rate
is at a sufficient level to allow safe operation upon the highways of the state and accounts for the cost of trained drivers and other reasonable expenses of operation of household movers.

(d) Until the operative date of rules or regulations of the bureau establishing or approving rates, the bureau shall enforce and administer the rates and rules set forth in the Public Utilities Commission’s Maximum Rate Tariff 4, as most recently amended
as of July 1, 2018, by the Public Utilities Commission.

19253.1.

A household mover shall not advertise, quote, or charge a rate or an amount for the transportation of used household goods and personal effects that is based on the amount of cubic feet or other volumetric unit measurement of those household goods and effects. In addition to any other remedy, a household mover that violates this section shall not be entitled to any compensation
for the transportation of the household goods and effects and shall make restitution to the shipper of any compensation collected.

19253.2.

The bureau may establish procedures by which any household mover may charge or collect a greater rate than the maximum rate established under this chapter.

19253.3.

The bureau shall make any rules that are necessary to the application and enforcement of the rates established or approved pursuant to this chapter.

19254.

A household mover shall not directly or indirectly pay any commission to a shipper, consignee, or the employee thereof, or to the payer of the transportation charges, or refund, or remit to those persons, in any manner or by any device any portion of the rates or charges so specified, except upon authority of the bureau.

19255.

No household mover, no officer or agent of a household mover, and no person acting for or employed by a household mover shall, by means of known false billing, classification, weight, weighing or
report of weight, or by any other device, assist, suffer, or permit any corporation or person to obtain transportation for any property between points within this state at rates less than the minimum rates or more than the maximum rates then established, approved, or administered by the bureau.

19256.

No person, no corporation, and no officer, agent, or employee of a corporation shall, by means of false billing, false or incorrect classification, false weight or weighing, false representation as to the content or substance of a package, or false report or statement of weight, or by any other device or means, whether with or without the consent or connivance of a household mover, or any of its officers, agents, or employees, seek to obtain or obtain transportation for property at less than the minimum rates or charges or more than the maximum rates or charges
established, approved, or administered by the bureau.

19257.

No person, no corporation, and no officer, agent, or employee of a corporation, shall knowingly, directly or indirectly by any false statement or representation as to cost or value or the nature or extent of damage, or by the use of any false billing, bill of lading, receipt, voucher, roll, account, claim, certificate, affidavit, or deposition, or upon any false, fictitious, or fraudulent statement or entry, obtain or attempt to obtain any allowance, rebate, or payment for damage in connection with or growing out of the transportation of property subject to this chapter, or an agreement to transport property subject to this chapter, whether with or without the consent or connivance of a household
mover, or any of its officers, agents, or employees. No household mover and no officer, agent, or employee of a household mover shall knowingly pay or offer to pay any such allowance, rebate, or claim for damage.

Article
5. Reports, Records, and Inspections

19258.

(a) Each household mover maintaining an office or place of business within this state and offering intrastate service shall keep in that office or place of business all books, accounts, papers, and records required by the bureau to be kept within this state. Those books, accounts, papers, or records shall not be, at any time, removed from the state except upon such conditions as the bureau prescribes.
Household movers performing intrastate service as household movers that do not maintain an office or place of business within this state shall make books, accounts, papers, and records pertaining to the intrastate service available to the bureau at its request at a place designated within this state for examination by the bureau, or in the alternative reimburse the bureau for the actual expense of examining those books, accounts, papers, or records at the place outside of the state where those records are kept.

(b) The bureau may require annual, periodic, or special reports to be filed by all household
movers, may prescribe the manner and form in which reports shall be made, and may require specific answers to all questions upon which the bureau deems information to be necessary. The reports shall be under oath whenever the bureau so requires.

19259.

The bureau may require any household mover to file with it a true copy of any contract, agreement, or arrangement between the household mover and any other household mover in relation to any traffic affected by this
chapter.

19260.

The bureau may prescribe the forms of any accounts, records, and memoranda, including those pertaining to the movement of traffic and the receipt or expenditure of money, to be kept by household movers, and the length of time the accounts, records, and memoranda shall be preserved.

19260.1.

If the bureau has prescribed the forms of accounts, records, and memoranda to be kept by a household mover for any of its business, it is unlawful for any household mover to keep any accounts, records, or memoranda for that business other than those so prescribed or those prescribed by or under the authority of any other state or of the United States, excepting those
accounts, records, or memoranda that are explanatory of and supplemental to the accounts, records, or memoranda prescribed by the bureau.

19260.2.

The bureau and its authorized employees, representatives, and inspectors shall at all times have access to all lands, buildings, and equipment of household movers used in connection with the operation of their businesses as household movers in this state, and also all accounts, records, and memoranda, including all documents, books, papers, and correspondence kept or
required to be kept by household movers, and may photocopy or electrostatically or photostatically reproduce at the bureau’s expense any of these accounts, records, memoranda, documents, books, papers, and correspondence at either the premises of the household mover or the offices of the bureau. A household mover may determine whether the copying or
reproduction is done at its premises or at the offices of the bureau, and if copying or reproduction expenses are incurred by the household mover, the bureau shall, upon request, reimburse the household mover for the expenses.

19260.3.

The employees, representatives, and inspectors of the bureau may inspect and examine any lands, buildings, equipment, accounts, books, records, and memoranda, including all documents, papers, and correspondence kept or required to be kept by household movers.

19261.

Sections 19258 to 19260.3, inclusive, shall, to the extent deemed necessary by the bureau, apply to persons having control, direct or indirect, over or persons affiliated with any household mover.

19262.

(a) Every household mover shall furnish to the bureau annually, as specified by the bureau, a list, prepared under oath, of all vehicles used in transportation for compensation during the preceding year. The bureau shall furnish a copy of this list to the Department of the California Highway Patrol and to the
household mover’s insurer, if the household mover’s accident liability protection is provided by a policy of insurance.

(b) If the household mover’s insurer informs the bureau that the household mover has failed to obtain insurance coverage for any vehicle reported on
the list, the bureau may, in addition to any other applicable penalty provided in this chapter, for a first occurrence, suspend the household mover’s permit, or impose a fine, or both, and for a second or subsequent occurrence may suspend or revoke the permit, or impose a fine, or both.

Article
5.3. Delivery and Claims

19265.

A claim against a household mover for loss or damage of goods shall not be denied solely because the lost or damaged goods were not noted at the time of delivery. Whenever a household mover requires a signed statement acknowledging delivery and receipt of goods, the statement shall not include any representation that the goods were delivered in satisfactory condition, but shall include a
notice that the shipper may file a claim with the household mover for lost or damaged goods.

Article
5.4. Subhauling Agreements

19266.

A household mover shall not transport household goods under a subhauling agreement unless each of the following occurs:

(a) The subhauler is permitted by the bureau to transport household goods and complies with the requirements of this chapter.

(b) The
household mover and subhauler are jointly and severally liable for any loss or damage caused by the subhauler.

19266.1.

The bureau shall adopt any rules and regulations it determines to be necessary to enforce the requirements of this article.

19266.2.

This article does not apply to a subhauling agreement when the subhauler is not otherwise subject to this chapter for activity related to the subhauling agreement.

Article
5.5. Estimates

19267.

The bureau shall establish rules and regulations controlling the estimates given by a household mover to a shipper of the charges the household mover would make to perform services covered by this chapter. All household movers
shall observe those rules and regulations and the failure to do so is unlawful. The bureau shall make such rules and regulations as are necessary to the application and enforcement of rules and regulations established pursuant to this section.

Article
6. Proceedings

19268.

(a) Except as otherwise provided in this chapter, all proceedings under this chapter to deny, suspend, amend, revoke, or place on probation a permit shall be conducted pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.

(b) A citation or fine assessment issued pursuant to a citation shall inform the household mover that, if he or she desires a
hearing to contest a finding of a violation, the hearing shall be requested by written notice to the bureau within 30 days of the date of issuance of the citation or assessment. If a hearing is not requested pursuant to this section, payment of any fine shall not constitute an admission of the violation charged. Hearings shall be held pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.

19269.

Whenever the bureau determines that any household mover or any officer, director, or agent of any household mover is failing or omitting, or about to fail or omit, to do anything required of it by law, or by any order, decision, rule, regulation, direction, or requirement administered by the bureau, or is doing anything or about to do anything, or permitting anything or
about to permit anything to be done, in violation of law or of any order, decision, rule, regulation, direction, or requirement administered by the bureau, the bureau may request the Attorney General or any district attorney, county counsel, city attorney, or city prosecutor in this state to make an application to the superior court in and for the county, or city and county, in which the cause or some part of the cause arose, or in which the corporation complained of has its principal place of business, or in which the person complained of resides for the purpose of having the violations or threatened violations stopped and prevented, either by mandamus or injunction, including, but not limited to, an order allowing vehicles used for subsequent operations subject to the order to be impounded at the
household mover’s expense and subject to release only by subsequent court order following a petition to the court by the defendant or owner of the vehicle. Any action or proceeding brought pursuant to this section by the Attorney General, or a district attorney, county counsel, city attorney, or city prosecutor, as applicable, shall be brought in the name of the people of the State of California, by petition to the superior court, alleging the violation or threatened violation complained of and praying for appropriate relief by way of mandamus or injunction.

19269.1.

(a) Whenever the bureau determines that any household mover or any officer, director, or agent of any household mover has abandoned, or is abandoning, stored household goods or property of any shippers under contract with the
household mover or movers, it may request the Attorney General or any district attorney, county counsel, city attorney, or city prosecutor in this state to commence a proceeding in superior court for the purpose of having the court appoint either a receiver or bureau staff to identify the stored items of property, to take possession of the property, and to arrange the return of the property to its owners in accordance with the orders of the court and with regard for the protection of all property rights involved.

(b) The proceeding shall be brought in the superior court in and for the county, or city and county, in which the cause or some part of the cause arose, or in which the person or corporation complained of has its principal place of business, or in which the person complained of resides. The
proceeding shall be commenced in the name of the people of the State of California, by petition to the superior court, alleging the facts and circumstances involved and praying for appropriate relief by way of mandamus or injunction, or the appointment of a receiver, and authorizing the bureau to arrange for the hiring of a receiver who shall be required to comply with the requirements of Sections 566, 567, and 568 of the Code of Civil Procedure.

(c) The court may also appoint a receiver to manage the business of a household mover or movers and return property to its owner or owners upon a showing satisfactory to the court that the abandonment
or threatened abandonment by the household mover jeopardizes property or funds of others in the custody or under the control of the household mover. The court may make any other order that it finds appropriate to protect and preserve those funds or that property.

(d) In the event a receiver is appointed by the court and the bureau is responsible for contracting for a receiver to carry out the duties authorized by this section, the bureau may contract on an emergency basis with a qualified person
or corporation to serve as receiver under the conditions and guidelines set by the court. The contract for the receiver services may be executed by the bureau on an expedited basis. The receiver shall be paid from the fees collected pursuant to this chapter.

19270.

Upon the filing of such a petition, the court shall specify a time, not exceeding 20 days after the service of the copy of the petition, within which the household mover complained of shall answer the petition, and in the meantime the household mover may be restrained. In case of default in answer, or after answer, the court shall immediately inquire into the facts and circumstances of the case.
Those corporations or persons that the court deems necessary or proper to be joined as parties, in order to make its judgment, order, or writ effective, may be joined as parties. The final judgment in any such action or proceeding shall either dismiss the action or proceeding or direct that the writ of mandamus or injunction issue or be made permanent as prayed for in the petition, or in such modified or other form as will afford appropriate relief.

Article
7. Suspension and Revocation of Permits

19271.

The bureau may, at the request of any household mover, suspend the operating permit of the household mover for a definite time during which it is unlawful for the household mover to conduct any operations as
a household mover.

19272.

Upon the suspension of a permit, the bureau shall require the removal from any vehicle operated under the permit of any identifying symbols that have been placed on the vehicle.

19273.

Upon the termination of the period of suspension, the bureau shall restore the permit and the household mover shall again place on all vehicles the identifying symbols removed pursuant to the suspension.

19274.

A permit shall remain in effect until suspended or terminated as provided in this chapter. Any permit not exercised for a period of one year, inclusive of all periods of suspension, shall lapse and terminate.

A permit shall not be sold, leased, assigned, or otherwise transferred or encumbered by the holder of the permit without the holder first having secured from the bureau an order authorizing the transfer or encumbrance. The bureau shall not authorize any transfer or encumbrance of a permit except pursuant to a finding made by the bureau that the permit authorized to be transferred or encumbered has not lapsed or been terminated by nonexercise as provided in this section. Any sale, lease,
assignment, or other transfer or encumbrance is void unless made in accordance with the order of the bureau authorizing it.

19274.1.

(a) The bureau shall only authorize a sale, lease, assignment, or other transfer of a permit to a transferee who has qualified in the manner provided by Section 19239.

(b) The bureau shall prescribe the procedure relative to:

(1) Assignment of permits.

(2) Transfer of permits between persons, where the transfer is effected through rent, lease, or sale of the business.

(3) Change in name, ownership, and address.

19275.

(a) The bureau may suspend the permit of any household mover after notice and an opportunity to be heard, if the household mover knowingly and willfully files a false report with the bureau.

(b) The bureau may amend or revoke, in whole or in part, the permit of any household
mover, upon application of the permitholder, or may suspend, change, or revoke, in whole or in part, a permit, upon complaint or on the bureau’s own initiative, after notice and an opportunity to be heard, for providing false or misleading information on an application for a permit or for failure to comply with this chapter or with any order, rule, regulation, or tariff administered by the bureau, or with any term, condition, or limitation of the permit.

(c) As an alternative to the cancellation, revocation, or suspension of an operating permit or permits, the bureau may impose upon the holder of the permit or permits a fine of not more than thirty thousand dollars ($30,000). All fines collected shall be deposited into the
fund.

(d) The bureau may cancel, suspend, or revoke the permit of any household mover upon the conviction of the household mover of any misdemeanor under this chapter while holding operating authority issued by the bureau, or the conviction of the household mover or any of its officers of a felony
while holding operating authority issued by the bureau, limited to robbery, burglary, any form of theft, any form of fraud, extortion, embezzlement, money laundering, forgery, false statements, an attempt to commit any of the offenses described in this subdivision, aiding and abetting or conspiring to commit any of the offenses described in this subdivision, or intentional dishonesty for personal gain.

(e) (1) As used in this subdivision, “convicted of a prescribed felony” means a plea or verdict of guilty or a conviction following a plea of nolo contendere for any felony described in subdivision (d), or for an attempt to commit, aiding and abetting, or conspiring to commit any felony described in subdivision (d), that is committed in connection with, or arising from, a transaction for the transportation of used
household goods or personal effects.

(2) If a household mover is convicted of a prescribed felony, the permit of the household mover may be revoked.

(3) If an officer, director, or managing agent of the household mover is convicted of a prescribed felony, the
permit of the
household mover may be suspended for a period of five years. If the bureau determines that the household mover did not have knowledge of, participate in, direct, aid and abet, authorize, or ratify the conduct of the person convicted and did not in any manner benefit from that conduct, the bureau may reinstate the permit on terms the bureau determines to be appropriate in the interest of justice and to ensure the protection of the public. The bureau may also extend the suspension or revoke the permit as provided in subdivision (d).

(4) If an officer, director, managing agent, or employee of the
household mover is convicted of a prescribed felony, the person may not be an officer, director, managing agent, or employee of, or serve in any other capacity with, a household mover.

(5) It is a violation of this chapter for a household mover that knows or should know that a person has been convicted of a prescribed felony to hire, retain, or otherwise allow that person to serve as an officer, director, managing agent, or employee of, or in any other capacity
with, the
household mover.

19275.1.

(a) Upon receipt of a stop order issued by the Director of Industrial Relations pursuant to Section 3710.1 of the Labor Code, the bureau shall investigate to determine whether the household mover has filed a false statement relative to workers’ compensation insurance coverage, in violation of statute, or of rules or orders administered by the bureau. If, after notice and an opportunity to be heard, the bureau determines that there has been a violation of statute, or of rules or orders administered by the bureau, the bureau shall impose
appropriate penalties, which may include a fine and suspension of operating authority for a violation.

(b) Upon receipt of a complaint from the Director of Industrial Relations that a final judgment has been entered against any household mover as a result of an award having been made to an employee pursuant to Section 3716.2 of the Labor Code, the bureau shall, 30 days from the date the household mover is mailed the notice, initiate action to revoke the
household mover’s permit unless the judgment has been satisfied or has been discharged in accordance with the bankruptcy laws of the United States.

(c) Within seven days of receipt of a complaint from the Director of Industrial Relations that a final judgment has been entered against any household mover as a result of an award having been made to an employee pursuant to Section 3716.2 of the Labor Code, the bureau shall furnish the household mover
named in the final judgment written notice of the right to a hearing regarding the complaint and the procedure to follow to request a hearing. The notice shall state that the bureau is required to initiate revocation proceedings pursuant to subdivision (b) unless the household mover provides proof that the judgment is satisfied or has been discharged in accordance with the bankruptcy laws of the United States. The notice shall also inform the household mover of a right to a hearing and the procedures to follow to request a hearing.
Proceedings under this section shall be conducted pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. If the bureau finds that an unsatisfied judgment exists concerning a debt arising under Section 3717 of the Labor Code, the bureau shall immediately revoke the household mover’s permit.

19275.2.

(a) (1) Upon receipt of a written recommendation from the Department of the California Highway Patrol that the permit of a household mover be suspended for any of the following, the bureau, pending a hearing in the matter pursuant to subdivision (d), shall initiate proceedings to suspend the household mover’s permit:

(A) Failure to maintain any vehicle used in transportation for compensation in a safe operating condition or to comply with the Vehicle Code or with applicable regulations contained in Title 13 of the California Code of Regulations, if that failure is either a consistent failure or presents an imminent danger to public safety.

(B) Failure to enroll all drivers in the pull-notice system as required by Section 1808.1 of the Vehicle Code.

(C) Failure to submit any application or pay any fee required by subdivision (e) or (h) of Section 34501.12 of the Vehicle Code within the timeframes set forth in that section.

(b) (1) A household mover whose permit is suspended pursuant to subdivision (a) may obtain a reinspection of its terminal and vehicles by the Department of the California Highway Patrol by submitting a written request for reinstatement to the bureau and paying a reinstatement fee of one hundred twenty-five dollars ($125).

(2) A household mover whose permit is
suspended for failure to submit any application or to pay any fee required by Section 34501.12 of the Vehicle Code shall present proof of having submitted that application or having paid that fee to the Department of the California Highway Patrol before applying for reinstatement of that permit.

(3) The bureau shall deposit all reinstatement fees collected pursuant to this subdivision in the fund. The bureau shall then forward a request for reinspection to the Department of the California Highway Patrol which shall then perform a reinspection within a reasonable time or verify receipt of the application or fee, or both the application and fee. The bureau shall reinstate a household
mover’s
permit that is suspended under subdivision (a) promptly upon receipt of a written recommendation from the Department of the California Highway Patrol that the household mover’s safety compliance has improved to the satisfaction of that department, or that the required application or fees have been received, unless the permit is suspended for another reason or has been revoked.

(c) Before transmitting a recommendation pursuant to subdivision (a) to the bureau, the Department of the California Highway Patrol shall notify the household
mover in writing of all of the following:

(1) That the Department of the California Highway Patrol has determined that the household mover’s safety record, or compliance with Section 1808.1 of, or subdivision (e) or (h) of Section 34501.12 of, the Vehicle Code, is unsatisfactory, furnishing a copy of any documentation or summary of any other evidence supporting the determination.

(2) That the determination may result in a suspension or revocation of the
household mover’s permit by the bureau.

(3) That the household mover may request a review of the determination by the Department of the California Highway Patrol within five days of its receipt of the notice required under this subdivision. If a review pursuant to this paragraph is requested by the household mover, the Department of the California Highway Patrol shall conduct and evaluate that review prior to transmitting any notification to the bureau
pursuant to subdivision (a).

(d) If the bureau, after a hearing, finds that a household mover has continued to operate as a household mover after its permit or permits have been suspended pursuant to subdivision (a), the bureau shall do one of the following:

(1) Revoke the operating permit or permits of the
household mover.

(2) Impose upon the holder of the permit or permits a fine of not less than one thousand dollars ($1,000) nor more than five
thousand dollars ($5,000) for each day of unlawful operations.

19276.

After the cancellation or revocation of a permit or during the period of its suspension, it is unlawful for a household mover to conduct any operations as a household mover. The bureau may either grant or deny an application for a new permit whenever it appears that a prior permit of the applicant has been canceled or revoked pursuant to Section 19275, or whenever it
appears, after a hearing, that as a prior permitholder, the applicant engaged in any of the unlawful activities set forth in Section 19275 for which its permit might have been canceled or revoked.

Article
8. Fines and Penalties

19277.

(a) Every household mover and every officer, director, agent, or employee of any household mover who violates or who fails to comply with, or who procures, aids, or abets any violation by any household
mover of any provision of this chapter or any rule or regulation administered by the bureau pursuant to this chapter, or of any operating permit issued to any household mover, or who procures, aids, or abets any household mover in its failure to obey, observe, or comply with any such rule, regulation, or operating permit, is guilty of a misdemeanor, and is punishable by a fine of not more than two thousand five hundred dollars ($2,500) or by imprisonment in the county jail for not more
than three months, or both. If a violation is willful, each willful violation is punishable by a fine of not more than ten thousand dollars ($10,000) or by imprisonment in the county jail for not more than one year, or both. If the violation involves operating or holding oneself out as a household mover without a permit, the fine shall be not less than one thousand dollars ($1,000).

(b) Any person who violates subdivision (a) of Section 19237, is guilty of a misdemeanor, and is punishable by a fine of not more than ten thousand dollars ($10,000), by imprisonment in the county jail for not more than one year, or both, for each violation.

19277.1.

Every household mover, and every officer, director, agent, or employee of a household mover, who displays on any vehicle any identifying symbol other than the symbol prescribed by the bureau pursuant to Section 19236 or who fails to remove an identifying symbol when required by the bureau, is guilty of a misdemeanor and is punishable by a fine of not more than one thousand
dollars ($1,000), by imprisonment in the county jail for not more than one year, or both.

19278.

Every corporation or person other than a household mover, who knowingly and willfully, either individually, or acting as an officer, agent, or employee of a corporation, copartnership, or any other person other than a household mover, violates any provision of this chapter or fails to observe, obey, or comply with any rule, regulation, or requirement administered by
the bureau pursuant to this chapter, or who procures, aids, or abets any household mover in its violation of this chapter, or in its failure to obey, observe, or comply with any such rule, regulation, or requirement, is guilty of a misdemeanor, and is punishable by a fine of not more than one thousand dollars ($1,000) or by imprisonment in the county jail for not more than three months, or both.

19279.

Except as otherwise provided in this chapter, every household mover and every officer, director, agent, or employee of any household mover who violates or who fails to comply with, or who procures, aids, or abets, any violation by any household
mover of any provision of this chapter, or who fails to obey, observe, or comply with any rule, regulation, or requirement administered by the bureau pursuant to this chapter, or with any operating permit issued to any household mover, or who procures, aids, or abets any household mover in its failure to obey, observe, or comply with any such rule, regulation, requirement, or operating permit, is subject to a citation and fine of not more than five hundred dollars ($500) for each offense. This section
does not prohibit the bureau from seeking to deny, suspend, revoke, or place on probation an operating permit, in lieu of issuing a citation and fine.

19279.1.

Whenever the bureau finds that any person or corporation is operating as a household mover without a valid permit, or is holding itself out as such a household mover without a valid permit in contravention of Section 19279.3, the bureau may issue a citation and fine of not more than five thousand dollars ($5,000) for each violation. The bureau may assess the person or corporation an
amount sufficient to cover the reasonable expense of investigation incurred by the bureau.

19279.2.

Every corporation or person other than a household mover who knowingly and willfully, either individually, or acting as an officer, agent, or employee of a corporation, copartnership, or any other person other than a household mover, violates any provision of this chapter or fails to observe, obey, or comply with any order, decision, rule, regulation, direction,
demand, or requirement administered by the bureau pursuant to this chapter, or who procures, aids, or abets any household mover in its violation of this chapter, or in its failure to obey, observe, or comply with any such order, decision, rule, regulation, direction, demand, or requirement, is subject to a citation and fine of not more than five hundred dollars ($500) for each offense.

19279.3.

Every corporation or person who knowingly and willfully issues, publishes, or affixes, or causes or permits the issuance, publishing, or affixing, of any oral or written advertisement, broadcast, or other holding out to the public, or any portion thereof, that the corporation or person is in operation as a household mover without having a valid permit issued under this chapter is guilty of a misdemeanor punishable by a fine of not more than two thousand five hundred dollars ($2,500).

19280.

Every household mover that falsifies permit status, membership in an association, or location is subject to a citation and fine of not more than two thousand five hundred dollars ($2,500) per day that the household mover is in violation of this section.

19281.

Every violation of the provisions of this chapter or of any order, decision, decree, rule, regulation, direction, demand, or requirement administered by the bureau pursuant to this chapter by any household mover, any corporation, or any person is a separate and distinct offense, and in case of a continuing violation, each day’s continuance thereof is a separate and distinct offense.

19282.

All remedies and penalties accruing under this chapter are cumulative to each other and to the remedies and penalties available under any other law, and a suit for the recovery of one remedy or penalty does not bar or affect the recovery of any other remedy, penalty, or forfeiture or bar any criminal prosecution against any person or corporation, or any officer, director, agent, or employee thereof, or any other corporation or person.

19283.

Fines not paid to the bureau within the specified time period for a violation of this chapter or any order, decision, rule, regulation, direction, demand, tariff, or requirement administered by the bureau pursuant to this chapter shall be cause to deny the renewal of a permit or to suspend, revoke, or place it on probation.

19283.1.

(a) The bureau shall ensure that this chapter is enforced and obeyed, and that violations thereof are promptly prosecuted and that moneys due to the state are recovered and collected.

(b) For purposes of this section, “peace officer” means a person designated as a peace officer pursuant to Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code.

(c) A peace officer may enforce and assist in the enforcement of Sections 19277 and 19278, resulting from a violation of Section 19236, 19237, 19244, or 19276, or more than one of those sections. A peace officer may additionally enforce
and assist in the enforcement of Sections 19277.1 and 19279.3. In any case in which an arrest authorized by this subdivision is made for an offense declared to be a misdemeanor, and the person arrested does not demand to be taken before a magistrate, the arresting peace officer may, instead of taking the person before a magistrate, follow the procedure prescribed by Chapter 5C (commencing with Section 853.5) of Title 3 of Part 2 of the Penal Code. The provisions of that chapter shall thereafter apply with reference to any proceeding based upon the issuance of a citation pursuant to this authority.

(d) The bureau shall coordinate enforcement of this section with those peace officers likely to be involved in enforcing this section, including undertaking both of the following:

(2) Establishing lines of communication so that the bureau is notified if an action is commenced to enforce the requirements of those sections specified in subdivision (c), so that the bureau may take appropriate action to enforce the citation and fine provisions of this article.

(e) The Attorney General, a district attorney of the proper county or city and county, or a city attorney may institute and prosecute actions or proceedings for the violation of any law committed in connection with, or arising from, a transaction involving the transportation of household goods and personal
effects.

19283.2.

All fines recovered by the bureau pursuant to this chapter, together with the costs thereof, shall be paid into the fund.

19284.

(a) Whenever a written notice to appear has been mailed to the owner of a household mover motor vehicle, an exact and legible duplicate copy of the notice, when filed with the magistrate in lieu of a verified complaint, is a complaint to which the defendant may plead guilty.

(b) If, however, the defendant fails to appear, does not deposit bail, or pleads other than guilty to the offense charged, a complaint shall be filed that conforms to Chapter 2 (commencing with Section 948) of
Title 5 of Part 2 of the Penal Code and which shall be deemed to be an original complaint, and thereafter the proceeding shall be held as provided by law, except that the defendant may, by an agreement in writing, subscribed by the defendant and filed with the court, waive the filing of a verified complaint and elect that the prosecution may proceed upon a written notice to appear.

Article
9. Household Mover Uniform Business PermitFee Act

19285.

This article may be cited as the Household Movers Uniform Business Permit Fee Act.

19286.

An adequate transportation system is essential to the welfare of the state, and an important part of that system is service rendered by household movers.

19287.

On and after the effective date of this article, a city, county, or a city and county shall not assess, levy, or collect an excise or license fee or tax of any kind, character, or description whatever upon the intercity transportation business conducted on or after the effective date of this article, by any household movers, or person or corporation, owning or operating motor vehicles in the transportation of property for hire upon the public highways, under the
jurisdiction of the bureau. For purposes of this article, intercity transportation business includes every service performed in the connection with transportation of property by transportation companies where both the origin point and the destination point of the transported property are not within the exterior boundaries of a single city or city and county.

19288.

(a) On and after the effective date of this article, there is imposed upon every household mover, and every person or corporation, owning or operating motor vehicles in the transportation of property for hire upon the public highways, under the jurisdiction of the bureau, a permit fee that shall be paid to the
bureau.

(b) (1) On or before January 1, 2023, the bureau shall engage in
public workshops and a formal rulemaking pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, for the purpose of adopting and implementing a fee schedule that may increase or decrease the fees set forth in this chapter, or may impose alternate fees from the fees set forth in this chapter, provided that any alternate fees shall not exceed the reasonable costs of regulation for purposes of this chapter. The fees adopted by the bureau may include application fees, permit fees, reinstatement fees, delinquency fees, transfer fees, and other fees, as determined by the bureau. The fees adopted by the bureau pursuant to this paragraph shall supersede the fees otherwise set forth in this chapter, and upon the adoption of fees by the bureau pursuant to this paragraph, the fees prescribed in this chapter shall have no effect.

(2) Until the adoption of fees by the bureau
pursuant to paragraph (1), every household mover, and every person or corporation, owning or operating motor vehicles in the transportation of property for hire upon the public highways, under the jurisdiction of the bureau, shall pay to the bureau a permit fee equal to one-tenth of 1 percent of gross operating revenue, which shall be payable to the bureau in the manner and at the times provided for the payment of the fee provided in Section 5003.1 of the Public Utilities Code. For purposes of this paragraph, “gross operating revenue” shall be the gross operating revenue defined in Section 5002 of the Public Utilities Code. It is the intent of the Legislature that the fee imposed by this paragraph will be equivalent to the fee imposed pursuant to Section 5328 of the Public Utilities Code as of June 30, 2018.

(c) The fees imposed by this section are in lieu of all city, county, or
city and county excise or license
fees or
taxes of any kind, character, or description whatever, upon the intercity transportation business of any household
mover, and every person or corporation owning or operating motor vehicles in the transportation of property for hire upon the public highways, under the jurisdiction of the bureau.

(d) This section does not prohibit the imposition by a city, county, or city and county, of any excise or license tax authorized under Division 2 (commencing with Section 6001) of the Revenue and Taxation Code.

(e) The Public Utilities Commission shall enter into a no-cost memorandum of understanding with the department for the purpose of providing the department with access to the Public Utilities Commission’s database relating to household goods carriers. The Public Utilities Commission shall supply the department with
the information and data that the department requests relating to household goods carriers.

19288.1.

Until the adoption of fees by the bureau pursuant to Section 19288, every household mover shall pay to the bureau the fees required pursuant to, and in the manner specified in, Sections 5003.1 and 5003.2 of the Public Utilities Code. It is the intent of the Legislature that the fees imposed by this section shall be equivalent to the fees collected by the Public Utilities Commission, and imposed pursuant to Sections 5003.1 and 5003.2 of the Public Utilities Code, as of September 1, 2017. The fees to be paid by household movers as specified in this section are in addition to the fee specified in paragraph (2) of subdivision (b) of Section 19288.

19288.2.

(a) If a household mover is in default on the payment of the fees prescribed by this chapter for a period of 30 days or more, the bureau may suspend or revoke the household mover’s permit. The bureau shall estimate from all available information the gross operating revenue of that household mover, compute the fee for which the household mover is in default, and impose a penalty of 25 percent of that amount for failure, neglect, or refusal to report. In no event shall the amount of the penalty be less than one dollar ($1). Upon payment of the estimated fee and the penalty, the permit shall be reinstated.

(b) The bureau may grant a reasonable extension of the 30-day period to any household mover, upon written application of the household
mover and showing of the necessity for the extension.

(c) Upon the revocation of any permit issued to a household mover subject to this chapter, all fees provided for by this chapter shall become due and payable immediately.

19289.

(a) Any person who submits to the bureau a check for fees that is returned unpaid shall pay all subsequent required fees by cashier’s check or money order.

(b) Any person who submits to the bureau a check for fees that is returned unpaid shall be assessed an additional processing fee as determined by the bureau.

19290.

(a) Permits issued under this chapter expire two years from the date of issuance. To renew a permit, a permittee shall, on or before the date on which it would otherwise expire, apply for renewal on a form prescribed by the chief, and continue to pay the fees prescribed in Sections 19288 and 19288.1. Notwithstanding Section 163.5, if a permittee fails to renew the permit before its expiration, a delinquency fee of 20 percent
of the most recent fee paid to the bureau pursuant to Sections 19288 and 19288.1 shall be added to the amount due to the bureau at the next fee interval. If the renewal fee and delinquency fee are not paid within 90 days after expiration of a permit, the permittee shall be assessed an additional fee of 30 percent of the
most recent fee paid to the bureau pursuant to Sections 19288 and 19288.1.

(b) Except as otherwise provided in this chapter, a permittee may renew an expired permit within two years after expiration of the permit by filing an application for renewal on a form prescribed by the bureau, and paying all accrued fees.

(c) A permit that is not renewed within two years of its expiration shall not be renewed, restored, reinstated, or reissued, but the holder of the expired permit may apply for and obtain a new permit as provided in this chapter, upon payment of all fees that
accrued since the date the permit was last renewed.

(d) The bureau may impose conditions on any permit issued pursuant to subdivision (c).

19292.

The employees, representatives, auditors, and inspectors of the bureau may, under its order or direction, inspect and examine any books, accounts, records, memoranda, documents, papers, and correspondence kept by any person, corporation, or person having direct or indirect control over a person or corporation subject to this chapter. A permittee’s failure to allow an inspection pursuant to this section is grounds for suspension or revocation of the permit.

19293.

(a) The bureau may establish rules and regulations as it deems necessary to carry out this article.

(b) This section does not prohibit the imposition by any city, county, or city and county of any excise or license tax authorized under Division 2 (commencing with Section 6001).

Article
10. Operative Date

19294.

This chapter shall become operative on July 1, 2018.

SEC. 9.

Article 2.9 (commencing with Section 759) is added to Chapter 5 of Division 3 of the Harbors and Navigation Code, to read:

(c) “For-hire vessel” includes any vessel, by whatsoever power operated, carrying passengers for hire, except a seaplane on the water and vessels exempt from taxation under Section 3 of Article XIII of the California
Constitution.

(d) “For-hire vessel company” means any company owning, controlling, operating, or managing a for-hire vessel for the transportation of persons or property for compensation in this state, except a common carrier by vessel as defined in subdivision (b) of Section 211 of the Public Utilities Code.

759.2.

The division shall require every for-hire vessel company to procure, and continue in effect so long as the for-hire vessel company continues to offer its services for compensation, adequate protection against liability imposed by law upon a for-hire vessel company for the payment of damages for personal bodily injuries, including death resulting from those services, and property damage as a result of an accident.

759.4.

The division shall, after a public hearing, set the amount of liability insurance, required by Section 759.2, that is reasonably necessary to provide adequate compensation for damage incurred through an accident involving a for-hire vessel company. This amount shall be subject to periodic adjustment pursuant to the process described in this article.

759.6.

The protection required under Section 759.2 shall be evidenced by deposit with the division, covering each vessel used or to be used in for-hire vessel operations for compensation, of any of the following:

(a) A policy of insurance, issued by a company licensed to write such insurance in the state, or by nonadmitted insurers subject to Section 1763 of the Insurance Code, if those policies meet the rules promulgated by the department.

(b) A bond of a surety company licensed to write surety bonds in the state.

(c) Any evidence of the qualification of the for-hire
vessel company as a self-insurer as may be authorized by the department.

759.8.

With the consent of the division, a copy of an insurance policy, certified by the company issuing it to be a true copy of the original policy, or a photostatic copy thereof, or an abstract of the provisions of the policy, or a certificate of insurance issued by the company issuing the policy, may be filed with the division in lieu of the original or a duplicate or counterpart of the policy.

759.10.

The protection against liability shall be continued in effect so long as the for-hire vessel company continues to offer its services for compensation. The policy of insurance or surety bond shall not be cancelable on less than 30 days’ written notice to the department, except in the event of cessation of operations as a for-hire vessel company.

759.12.

The division may establish rules as are necessary to enforce this article.

759.14.

Any for-hire vessel company that knowingly refuses or fails to procure protection against liability, as required by Section 759.2, is guilty of a misdemeanor.

759.16.

Following an administrative hearing, the division may impose a penalty of not less than fifty dollars ($50) nor more than one thousand dollars ($1,000) upon any for-hire vessel company that violates any provision of this article or that fails to obey, observe, or comply with any rule established by the division pursuant to Section 759.12.

759.18.

(a) Upon filing of the evidence of liability protection pursuant to Section 759.2, the division shall provide a certificate of filing to the for-hire vessel company. The certificate shall be no larger than 8 ½ by 11 inches in size. The for-hire vessel company shall post the certificate of filing on the vessel in a prominent location that is visible to the passengers.

(b) A certificate that has been canceled, suspended, or revoked, or that is not valid, shall not be posted on a vessel.

759.20.

Upon receiving notification of impending cancellation of liability protection pertaining to a for-hire vessel company, the department shall, effective upon the date of the cancellation, revoke the certificate provided to the company pursuant to Section 759.18 and shall notify the company of this revocation. The company shall return the revoked certificate to the division.

759.22.

Rules and regulations adopted by the Public Utilities Commission pursuant to its prior authority over insurance of for-hire vessel companies shall remain in effect until revised or repealed by the division.

759.24.

This article shall become operative on July 1, 2018.

SEC. 10.

Section 212 of the Public Utilities Code is amended to read:

212.

(a) “Common carrier” shall not include:

(1) Any corporation or person owning, controlling, operating, or managing any vessel, by reason of the furnishing of water transportation service between points upon the inland waters of this state or upon the high seas between points within this state for affiliated or parent or subsidiary companies or for the products of other corporations or persons engaged in the same industry, if the water transportation service is furnished in tank vessels or barges specially constructed to hold liquids or fluids in bulk and if the service is not furnished to others not engaged in the same industry.

(2) Any corporation or person who operates any vessel for the transportation of persons for compensation, between points in this state if one terminus of every trip operated by the corporation or person is within the boundaries of a United States military reservation and is performed under a contract with an agency of the federal government which specifies the terms of service to be
provided; and provided that the corporation or person does not perform any service between termini within this state which are outside of a United States military reservation. For the purposes of this subdivision, the conditions of this exemption shall be reviewed by the Public Utilities Commission annually as of the first day of January of each year.

(3) Any corporation or person owning, controlling, operating, or managing any recreational conveyance such as a ski lift, ski tow, J-bar, T-bar, chair lift, aerial tramway, or other device or equipment used primarily while participating in winter sports activities.

(4) Any corporation or person furnishing or otherwise providing transportation by horse, mule, or other equine animal for entertainment or recreational
purposes.

(5) Any motor carrier of property, as defined in Section 34601 of the Vehicle Code.

(b) This section shall become inoperative on July 1, 2018, and, as of January 1, 2019, is repealed.

SEC. 11.

Section 212 is added to the Public Utilities Code, to read:

212.

(a) “Common carrier” shall not include:

(1) Any corporation or person owning, controlling, operating, or managing any vessel, by reason of the furnishing of water transportation service between points upon the inland waters of this state or upon the high seas between points within this state for affiliated or parent or subsidiary companies or for the products of other corporations or persons engaged in the same industry, if the water transportation service is furnished in tank vessels or barges specially constructed to hold liquids or fluids in bulk and if the service is not furnished to others not engaged in
the same industry.

(2) Any corporation or person who operates any vessel for the transportation of persons for compensation, between points in this state if one terminus of every trip operated by the corporation or person is within the boundaries of a United States military reservation and is performed under a contract with an agency of the federal government which specifies the terms of service to be provided; and provided that the corporation or person does not perform any service between termini within this state which are outside of a United States military reservation. For the purposes of this subdivision, the conditions of this exemption shall be reviewed by the Public Utilities Commission annually as of the first day of January of each year.

(3) Any corporation or person owning, controlling, operating, or managing any recreational conveyance such as a ski lift, ski tow, J-bar, T-bar, chair lift, aerial tramway, or other device or equipment used primarily while participating in winter sports activities.

(4) Any corporation or person furnishing or otherwise providing transportation by horse, mule, or other equine animal for entertainment or recreational purposes.

(5) Any motor carrier of property, as defined in Section 34601 of the Vehicle Code.

(6) A household mover, as defined in Section 19225.5 of the Business and Professions Code.

(b) This section shall become operative on July 1, 2018.

SEC. 12.

Section 303 of the Public Utilities Code is amended to read:

303.

(a) A public utilities commissioner may not hold an official relation to, nor have a financial interest in, a person or corporation subject to regulation by the commission. If any commissioner acquires a financial interest in a corporation or person subject to regulation by the commission other than voluntarily, his or her office shall become vacant unless within a reasonable time he or she divests himself or herself of the interest.

(b) No executive of a public utility may serve as commissioner within two years after leaving the employment of the utility.

(c) The commission shall
maintain an updated Conflict of Interest Code and Statement of Incompatible Activities in a manner consistent with applicable law.

SEC. 13.

Section 307.2 is added to the Public Utilities Code, to read:

307.2.

There is within the legal division of the commission an ethics officer who shall be designated by the general counsel. The ethics officer shall be responsible for both of the following:

(a) Instituting a program of enhanced ethics training for all commissioners and employees of the commission, including training concerning the
commission’s Conflict of Interest Code, Statement of Incompatible Activities, and limitations upon ex parte communications.

(b) Providing confidential advice to commissioners and employees of the commission on compliance with the commission’s Conflict of Interest Code, Statement of Incompatible Activities, and limitations upon ex parte communications. The ethics officer shall maintain the confidentiality of the commissioner’s or employee’s identity unless the commissioner or employee expressly indicates a desire to communicate his or her identity to the commission.

SEC. 14.

Section 307.5 is added to the Public Utilities Code, to read:

307.5.

(a) The commission shall appoint a chief administrative law judge, who shall hold office at the pleasure of the commission.

(b) The chief administrative law judge shall be responsible for the oversight of the administrative law judge division and shall organize, coordinate, supervise, and direct the operations of the division as directed by the commission, consistent with commission policies and priorities.

SEC. 15.

Section 307.6 is added to the Public Utilities Code, to read:

307.6.

(a) The commission shall appoint a chief internal auditor, who shall hold office at the pleasure of the commission.

(b) The chief internal auditor shall be responsible for the oversight of the internal audit unit and shall plan, initiate, and perform audits of key financial, management, operational, and information technology functions within the commission to improve accountability and transparency to executive and state management.

(c) The chief internal auditor shall report his or her findings and recommendations directly to an audit subcommittee of the commission.

(d) The chief internal auditor shall comply with Part 3.5 (commencing with Section 13885) of Division 3 of Title 2 of the Government Code.

SEC. 16.

Section 309 of the Public Utilities Code is amended to read:

309.

(a) The executive director may employ such officers, administrative law judges, experts, engineers, statisticians, accountants, inspectors, clerks, and employees as the executive director deems necessary to carry out the provisions of this part or to perform the duties and exercise the powers conferred upon the commission by law. All officers and employees shall receive such compensation as is fixed by the commission.

(b) The executive director may authorize commission employees to undertake temporary training and development assignments with other agencies, departments, and commissions that undertake coordinated activities with the commission,
including the Energy Commission, the State Air Resources Board, and the Division of
Oil, Gas, and Geothermal Resources.

SEC. 17.

Section 314.6 is added to the Public Utilities Code, to read:

314.6.

(a) The commission may conduct financial and performance audits of any entity or program created by any order, decision, motion, settlement, or other action of the commission.

(b) The commission shall complete any audit in a timely manner consistent with the Generally Accepted Government Auditing Standards.

(c) After performing an audit pursuant to this section,
the commission may conduct additional followup work that is related to any findings and recommendations related to the audit.

SEC. 18.

Section 321 of the Public Utilities Code is amended to read:

321.

(a) The commission shall appoint a public advisor and establish an office of the public advisor, including a separate office in the Los Angeles office of the commission. The commission may employ staff as necessary to carry out the duties of the office of the public advisor. The office of the public advisor shall assist members of the public and ratepayers who desire to testify before or present information to the commission in any hearing or proceeding of the commission. The public advisor shall advise the commission on procedural matters relating to public participation in proceedings of the commission.

(b) The public advisor and executive director
shall publicize the commission’s programs for encouraging and supporting
participation in the commission’s proceedings.

(c) The public advisor shall receive complaints and comments from members of the public concerning how the commission is carrying out its functions. The public advisor shall maintain the confidentiality of the identity of a member of the public who makes a complaint or comment unless the member of the public expressly indicates a desire to communicate his or her identity to the commission. The public advisor shall assess the nature of substantive complaints and comments from members of the public and take them into consideration when analyzing and recommending options for resolution of the matters underlying those complaints and comments.

SEC. 19.

Section 633 is added to the Public Utilities Code, to read:

633.

The requirements of Section 632 do not apply to contracts for legal services. The commission shall notify the Attorney General when contracting for legal services by attorneys who are not employees of the commission.

SEC. 20.

Section 912.3 is added to the Public Utilities Code, to read:

912.3.

Immediately upon completion of an audit of any entity or program created by any order, decision, motion, settlement, or other action by the commission conducted pursuant to Section 314.6, the commission shall transmit a copy of the audit report to the Legislature, including to the appropriate policy and fiscal committees or subcommittees of the Legislature, and to the Governor. The audit report shall be submitted to the Legislature in compliance with Section 9795 of the Government Code.

SEC. 21.

Article 6 (commencing with Section 4025) is added to Chapter 2.5 of Division 2 of the Public Utilities Code, to read:

Article
6. Repeal

4025.

This chapter shall become inoperative on July 1, 2018, and, as of January 1, 2019, is repealed.

SEC. 22.

Article 2 (commencing with Section 4675) is added to Chapter 4.5 of Division 2 of the Public Utilities Code, to read:

Article
2. Repeal

4675.

This chapter shall become inoperative on July 1, 2018, and, as of January 1, 2019, is repealed.

SEC. 23.

Article 10 (commencing with Section 5340) is added to Chapter 7 of Division 2 of the Public Utilities Code, to read:

Article
10. Repeal

5340.

This chapter shall become inoperative on July 1, 2018, and, as of January 1, 2019, is repealed.

SEC. 24.

Section 5503 of the Public Utilities Code is amended to read:

5503.

(a) The Public Utilities Commission shall require every commercial air operator to procure, and continue in effect so long as the commercial air operator continues to offer his or her services for compensation, adequate protection against liability imposed by law upon a commercial air operator and also upon any person using, operating or renting an aircraft with the permission, expressed or implied, of a commercial air operator for the payment of damages for personal bodily injuries, including death resulting therefrom, and property damage as a result of an accident.

(b) This section shall become inoperative on July 1, 2018, and, as
of January 1, 2019, is repealed.

SEC. 25.

Section 5503 is added to the Public Utilities Code, to read:

5503.

(a) All commercial air operators shall maintain in force at least one million dollars ($1,000,000) of liability insurance for personal injury, wrongful death, and property damage resulting from the operation of an aircraft pursuant to this article, with additional liability coverage of one hundred thousand dollars ($100,000) for each passenger for any aircraft covered by this article.

(b) This section shall become operative on July 1, 2018.

SEC. 26.

Section 5503.5 of the Public Utilities Code is amended to read:

5503.5.

(a) Notwithstanding the provisions of Section 5503, the commission shall require less accident insurance than that required of commercial air operators pursuant to Section 5503 of persons who fulfill all the following requirements:

(1) That conduct nonstop sightseeing flights that begin and end at the same airport and are conducted within a 25-mile radius of that airport.

(2) Engage in passenger-carrying airlift sponsored by a charitable organization, and for which the passengers make a donation to the organization.

(3) The flight is conducted from a public airport adequate for the aircraft used, or from another airport that has been approved for the operation by a Federal Aviation Administration inspector.

(4) Each pilot in command has logged at least 200 hours of flight time within the previous four years.

(5) No acrobatic or formation flights are conducted.

(6) Each aircraft used is certificated in the standard category and complies with the 100-hour inspection requirement of Section 91.409 of Title 14 of the Code of Federal Regulations.

(7) The flight is made under visual flying rules during the day.

(b) This section shall become inoperative on July 1, 2018, and, as of January 1, 2019, is repealed.

SEC. 27.

Section 5505 of the Public Utilities Code is amended to read:

5505.

(a) The commission shall, after a public hearing, set the amount of liability insurance, required by Section 5503, which is reasonably necessary to provide adequate compensation for damage incurred through an accident involving a commercial air operator.

(b) This section shall become inoperative on July 1, 2018, and, as of January 1, 2019, is repealed.

SEC. 28.

Section 5506 of the Public Utilities Code is amended to read:

5506.

(a) The protection required under Section 5503 shall be evidenced either by the deposit with the commission, covering each aircraft used or to be used in commercial operations for compensation, of one of the following:

(1) A copy of the policy of insurance, issued by a company licensed to write such insurance in the state.

(2) A bond of a surety company licensed to write surety bonds in the state.

(3) Such evidence of the qualification of the commercial air operator as a self-insurer as may be authorized by the commission.

(b) This section shall become inoperative on July 1, 2018, and, as of January 1, 2019, is repealed.

SEC. 29.

Section 5506 is added to the Public Utilities Code, to read:

5506.

(a) All commercial air operators shall comply with any requirement of a city, county, or city and county that the person obtain a business license as a condition for operating in that city, county, or city and county.

(b) All commercial air operators shall also provide the city, county, or city and county a currently effective certificate of insurance evidencing insurance coverage as required in Section 5503. A new certificate of insurance shall be provided to the city, county, or city and county at least annually or whenever there is a material change in insurance coverage. A city, county, or city and county shall give reasonable notice of this requirement with any
business license renewal notification. A city, county, or city and county may charge a reasonable fee for purposes of carrying out the provisions of this subdivision.

(c) This section shall become operative on July 1, 2018.

SEC. 30.

Section 5507 of the Public Utilities Code is amended to read:

5507.

(a) With the consent of the commission a copy of an insurance policy, certified by the company issuing it to be a true copy of the original policy, or a photostatic copy thereof, or an abstract of the provisions of the policy, or a certificate of insurance issued by the company issuing the policy, may be filed with the commission in lieu of the original or a duplicate or counterpart of the policy.

(b) This section shall become inoperative on July 1, 2018, and, as of January 1, 2019, is repealed.

SEC. 31.

Section 5508 of the Public Utilities Code is amended to read:

5508.

(a) The protection against liability shall be continued in effect so long as the commercial air operator continues to offer his or her services for compensation. The policy of insurance or surety bond shall not be cancelable on less than 30 days written notice to the commission, except in the event of cessation of operations as a commercial air operator.

(b) This section shall become inoperative on July 1, 2018, and, as of January 1, 2019, is repealed.

SEC. 32.

Section 5508 is added to the Public Utilities Code, to read:

5508.

(a) The protection against liability shall be continued in effect so long as the commercial air operator continues to offer his or her services for compensation. The policy of insurance or surety bond shall not be cancelable on less than 30 days’ written notice to the city, county, or city and county, except in the event of cessation of operations as a commercial air operator.

(b) This section shall become operative on July 1, 2018.

SEC. 33.

Section 5509 of the Public Utilities Code is amended to read:

5509.

(a) The commission may establish such rules as are necessary to enforce this article.

(b) This section shall become inoperative on July 1, 2018, and, as of January 1, 2019, is repealed.

SEC. 34.

Section 5511 of the Public Utilities Code is amended to read:

5511.

(a) Notwithstanding the provisions of Section 5506, the commission shall have the authority to accept policies of insurance written by nonadmitted insurers subject to Section 1763 of the Insurance Code of this state, provided that the policies of insurance shall meet the rules and regulations promulgated therefor by the commission.

(b) This section shall become inoperative on July 1, 2018, and, as of January 1, 2019, is repealed.

SEC. 35.

Section 5511 is added to the Public Utilities Code, to read:

5511.

(a) Notwithstanding the provisions of Section 5506, a city, county, or city and county shall have the authority to accept policies of insurance written by nonadmitted insurers subject to Section 1763 of the Insurance Code of this state, provided that the policies of insurance shall meet the rules and regulations adopted therefor by the applicable jurisdiction.

(b) This section shall become operative on July 1, 2018.

SEC. 36.

Section 5512 of the Public Utilities Code is amended to read:

5512.

(a) Following an administrative hearing, the commission may impose a penalty of not exceeding one thousand dollars ($1,000) upon any commercial air operator who fails to file the evidence of liability protection required by this article.

(b) This section shall become inoperative on July 1, 2018, and, as of January 1, 2019, is repealed.

SEC. 37.

Section 5512 is added to the Public Utilities Code, to read:

5512.

(a) Following an administrative hearing, a city, county, or city and county may impose a penalty of not exceeding one thousand dollars ($1,000) upon any commercial air operator who fails to file the evidence of liability protection required by this article.

(b) This section shall become operative on July 1, 2018.

SEC. 38.

Section 34505.7 of the Vehicle Code is amended to read:

34505.7.

(a) Upon determining that a private carrier of passengers, as defined in Section 4001 of the Public Utilities Code, has either (1) failed to maintain any vehicle of the carrier in a safe operating condition or to comply with the Vehicle Code or with regulations contained in Title 13 of the California Code of Regulations relative to motor carrier safety, and, in the department’s opinion, the failure presents an imminent danger to public safety or constitutes such a consistent failure as to justify a recommendation to the Public Utilities Commission, or (2) failed to enroll all drivers in the pull-notice system as required by Section 1808.1, the department shall make a written recommendation to the
Public Utilities Commission that the carrier’s registration be suspended. Two consecutive unsatisfactory terminal ratings assigned for failure to comply with the periodic report requirements in Section 1808.1, or cancellation of an employer’s enrollment by the Department of Motor Vehicles for nonpayment of fees, constitutes a consistent failure. The department shall retain a record, by operator, of every recommendation made pursuant to this section.

(b) Before transmitting a recommendation pursuant to subdivision (a), the department shall give written notice to the carrier of all of the following:

(1) That the department has determined that the carrier’s safety record is unsatisfactory, furnishing a copy of any documentation or summary of any other evidence supporting the
determination.

(2) That the determination may result in a suspension or revocation of the carrier’s registration by the Public Utilities Commission.

(3) That the carrier may request a review of the determination by the department within five days of its receipt of the notice required by this subdivision. If a review pursuant to this paragraph is requested by the carrier, the department shall conduct and evaluate that review prior to transmitting any notification pursuant to subdivision (a).

(c) Commercial vehicle inspection facilities along the border of Mexico, including those in Calexico and Otay Mesa, shall be staffed at all times by a Department of the California Highway Patrol inspector whenever those
facilities are open to the public. The Department of the California Highway Patrol shall also assign, as staffing permits, a commercial inspector to control truck traffic entering the United States at the Tecate border crossing.

(d) This section shall become inoperative on July 1, 2018, and, as of January 1, 2019, is repealed.

SEC. 39.

Section 34505.7 is added to the Vehicle Code, to read:

34505.7.

(a) Upon determining that a private carrier of passengers, as defined in Section 34681 of the Vehicle Code, has either (1) failed to maintain any vehicle of the carrier in a safe operating condition or to comply with the Vehicle Code or with regulations contained in Title 13 of the California Code of Regulations relative to motor carrier safety, and, in the department’s opinion, the failure presents an imminent danger to public safety or constitutes such a consistent failure as to justify a recommendation to the Department of Motor Vehicles, or (2) failed to enroll all drivers in the pull-notice system as required by Section 1808.1, the department shall make a written recommendation to the Department of Motor Vehicles that
the carrier’s registration be suspended. Two consecutive unsatisfactory terminal ratings assigned for failure to comply with the periodic report requirements in Section 1808.1, or cancellation of an employer’s enrollment by the Department of Motor Vehicles for nonpayment of fees, constitutes a consistent failure. The department shall retain a record, by operator, of every recommendation made pursuant to this section.

(b) Before transmitting a recommendation pursuant to subdivision (a), the department shall give written notice to the carrier of all of the following:

(1) That the department has determined that the carrier’s safety record is unsatisfactory, furnishing a copy of any documentation or summary of any other evidence supporting the determination.

(2) That the determination may result in a suspension or revocation of the carrier’s registration by the Department of Motor Vehicles.

(3) That the carrier may request a review of the determination by the department within five days of its receipt of the notice required by this subdivision. If a review pursuant to this paragraph is requested by the carrier, the department shall conduct and evaluate that review prior to transmitting any notification pursuant to subdivision (a).

(c) Commercial vehicle inspection facilities along the border of Mexico, including those in Calexico and Otay Mesa, shall be staffed at all times by a Department of the California Highway Patrol inspector whenever those facilities are open to
the public. The Department of the California Highway Patrol shall also assign, as staffing permits, a commercial inspector to control truck traffic entering the United States at the Tecate border crossing.

(d) This section shall become operative on July 1, 2018.

SEC. 40.

Division 14.86 (commencing with Section 34680) is added to the Vehicle Code, to read:

DIVISION 14.86. Private Carriers of Passengers Registration Act

34680.

This division may be cited as the Private Carriers of Passengers Registration Act.

34681.

(a) For purposes of this division, “private carrier” means a not-for-hire motor carrier, as defined in Section 408, who transports passengers and is required to obtain a carrier identification number pursuant to Section 34507.5, including an organization that provides transportation services incidental to the operation of a youth camp that is either a nonprofit organization that qualifies for tax exemption under Section 501(c)(3) of the Internal Revenue Code or an organization that operates an organized camp, as defined in Section 18897 of the Health and Safety Code, serving youth 18 years of age or younger.

(b) For purposes of this division, “private carrier” does not include
either of the following:

(1) The operator of an automobile rental business that uses vehicles owned or leased by that operator, without charge other than as may be included in the automobile rental charges, to carry its customers to or from its office or facility where rental vehicles are furnished or returned after the rental period.

(2) The operator of a hotel, motel, or other place of temporary lodging that provides transportation service in vehicles owned or leased by that operator, without charge other than as may be included in the charges for lodging, between the lodging facility and an air, rail, water, or bus passenger terminal or between the lodging facility and any place of entertainment or commercial attraction, including, but not limited to, facilities providing snow skiing.
Nothing in this subdivision authorizes the operator of a hotel, motel, or other place of temporary lodging to provide any
round-trip sightseeing service without a permit, as required by subdivision (c) of Section 5384 of the Public Utilities Code.

34682.

The California Department of Tax and Fee Administration shall furnish, upon request, whatever information from its records may be required to assist the department and the Department of the California Highway Patrol in the effective enforcement of this division.

34683.

(a) Except as provided in Section 34686, a private carrier of passengers shall not operate a motor vehicle on any public highway in this state unless its operation is currently registered with the department. The department shall grant registration upon the filing of the application and the payment of the fee as required by this division, subject to the private carrier of passengers’ compliance with this division. A private carrier of passengers who is exempt from registration need not file a notice of exemption.

(b) To satisfy the registration requirement described in subdivision (a), a private carrier of passengers shall submit required fees and all of the
following information and documents to the department:

(1) The carrier identification number issued to the applicant by the Department of the California Highway Patrol.

(2) Identification information, including business name, form of business, addresses, including mailing address, contact person’s name, and phone number.

(3) Whether the registrant provides transportation services incidental to operation of an organized camp, as defined in Section 18897 of the Health and Safety Code, or as a nonprofit that qualifies for a tax exemption under Section 501(c)(3) of the Internal Revenue Code, or neither.

(4) Proof of insurance or financial responsibility as
required under Section 34687.

(5) The dated signature of the person completing the form that
declares under penalty of perjury that the information provided is true and correct.

34684.

A fee of thirty-five dollars ($35) shall be paid to the department for the filing of the initial registration of private carriers of passengers, and an annual renewal fee of thirty dollars ($30) shall also be paid by private carriers of passengers. The fees required to be paid by private carriers of passengers pursuant to this section shall be deposited in the Motor Vehicle Account in the State Transportation Fund.

34685.

(a) When the Department of the California Highway Patrol issues a carrier identification number pursuant to Section 34507.5 to a private carrier of passengers, it shall inform the carrier of the provisions of this division and the requirement that the carrier register with the department.

(b) The Department of the California Highway Patrol shall periodically, but not less frequently than quarterly, transmit to the department a list of the persons, firms, and corporations identified as private carriers of passengers to which it has issued a carrier identification number. Upon receipt of the list, the department shall notify the private carriers of passengers of the
registration requirements and of the penalties for failure to register.

34686.

The State of California and its agencies and political subdivisions are exempt from the registration requirements of this division.

34687.

(a) Registration shall not be granted to any private carrier of passengers until proof of financial responsibility is filed by an insurer or surety with the department. The department may accept only a currently effective certificate of insurance issued by a company licensed to write that insurance in this state or by a nonadmitted insurer subject to Section 1763 of the Insurance Code, and only if the policy represented by the certificate meets the minimum insurance requirements contained in Section 34692, or a surety bond evidencing protection against liability imposed by law for the payment of damages for personal injury to, or death of, any person or property damage, or both. Each certificate shall be valid until canceled,
and may only be canceled upon 30 days’ written notice submitted to the department by the carrier or surety.

(b) Whenever the department determines that the certificate of insurance or surety bond of a private carrier of passengers has lapsed or been terminated, the department shall suspend the private carrier of passengers’ registration. Registration of any private carrier or organization providing transportation services incidental to operation of a youth camp stand suspended immediately upon the effective date of the cancellation.

(c) The department shall notify the private carrier of passengers of any action taken under subdivision (b).

34688.

A private carrier of passengers shall display the carrier identification number, as required by Section 34507.5, on the vehicles operated pursuant to the registration granted under this division.

34689.

The department shall periodically, but not less frequently than quarterly, transmit to the Department of the California Highway Patrol a list of persons, firms, and corporations that have received a carrier identification number from the Department of the California Highway Patrol, but that have not registered with the department. The Department of the California Highway Patrol may use this list in its normal enforcement activities, including terminal inspections and roadside enforcement, as prima facie evidence of a failure to register.

34690.

(a) Any person or corporation that violates any provision of this division is guilty of a misdemeanor, and is punishable by a fine of not more than two thousand five hundred dollars ($2,500), or by imprisonment in the county jail for not more than three months, or both.

(b) A violation of this section is an infraction subject to the procedures described in Sections 19.6 and 19.7 of the Penal Code when the conditions specified in either paragraph (1) or (2) of subdivision (d) of Section 17 of the Penal Code are met.

34691.

(a) Upon receipt of a written recommendation from the Department of the California Highway Patrol that the registration of a private carrier of passengers be suspended for failure to either (1) maintain any vehicle of the carrier in a safe operating condition or to comply with this code or with regulations contained in Title 13 of the California Code of Regulations relative to motor carrier safety, if that failure is either a consistent failure or presents an imminent danger to public safety, or (2) enroll all drivers in the pull-notice system as required by Section 1808.1, the department shall, pending a hearing in the matter pursuant to subdivision (d), suspend the carrier’s registration. The Department of the California
Highway Patrol’s written recommendation shall specifically indicate compliance with subdivision (c).

(b) A private carrier of passengers whose registration is suspended pursuant to subdivision (a) may obtain a reinspection of its terminal and vehicles by the Department of the California Highway Patrol by submitting a written request for reinstatement to the department and paying a reinstatement fee of one hundred twenty-five dollars ($125). The fees required to be paid by carriers of passengers pursuant to this section shall be deposited in the Motor Vehicle Account in the State Transportation Fund. Upon payment of the fee, the department shall forward a request for reinspection to the Department of the California Highway Patrol, which shall perform a reinspection within a reasonable time. The department shall reinstate a carrier’s
registration suspended under subdivision (a) promptly upon receipt of a written recommendation from the Department of the California Highway Patrol that the carrier’s safety compliance has improved to the satisfaction of the Department of the California Highway Patrol, unless the registration is suspended for another reason or has been revoked.

(c) Before transmitting a recommendation pursuant to subdivision (a) to the department, the Department of the California Highway Patrol shall notify the private carrier of passengers in writing of all of the following:

(1) That the Department of the California Highway Patrol has determined that the carrier’s safety record is unsatisfactory, furnishing a copy of any documentation or summary of any other evidence supporting the
determination.

(2) That the determination may result in a suspension or revocation of the carrier’s registration by the department.

(3) That the carrier may request a review of the determination by the Department of the California Highway Patrol within five days of its receipt of the notice required under this subdivision. If a review pursuant to this paragraph is requested by the carrier, the Department of the California Highway Patrol shall conduct and evaluate that review prior to transmitting any notification to the department pursuant to subdivision (a).

(d) Whenever the department suspends the registration of any private carrier of passengers pursuant to subdivision (a), the department shall furnish the carrier
written notice of the suspension and shall hold a hearing within a reasonable time, not to exceed 21 days, after a written request therefor is filed with the department, with a copy thereof furnished to the Department of the California Highway Patrol. At the hearing, the carrier shall show cause why the suspension should not be continued. At the conclusion of the hearing, the department may terminate the suspension, continue the suspension in effect, or revoke the registration. The department may revoke the registration of any carrier suspended pursuant to subdivision (a) at any time 90 days or more after its suspension if the department has not received a written recommendation for reinstatement from the Department of the California Highway Patrol and the carrier has not filed a written request for a hearing with the department.

34692.

(a) Except as provided in subdivision (b), every private carrier of passengers as defined in Section 34681 that is required to register under Section 34683 shall provide and thereafter continue in effect on each vehicle so long as the carrier may be engaged in conducting such operations adequate protection against liability imposed by law upon such carrier in accordance with the following:

(1) For the payment of damages for bodily injury to, or death of, one person in any one accident in the amount of at least fifteen thousand dollars ($15,000).

(2) Subject to the limit for one person, in the amount of
at least thirty thousand dollars ($30,000) for bodily injury to, or death of,
two or more persons in any one accident.

(3) For injury to, or destruction of, property of others in the amount of at least five thousand dollars ($5,000) for any one accident.

(b) Transportation services incidental to operation of a youth camp that are provided by either a nonprofit organization described in Section 501(c)(3) of the Internal Revenue Code (26 U.S.C. Sec. 501 (c)(3)), that is exempt from taxation under Section 501(a) of that code (26 U.S.C. Sec. 501(a)), or an organization that operates an organized camp, as defined in Section 18897 of the Health and Safety Code, serving youth 18 years of age or younger shall provide and thereafter continue in effect so long as it may be engaged in conducting such operations the following minimum amounts of
general liability insurance coverage for vehicles that are used to transport youth:

(1) A minimum of five hundred thousand dollars ($500,000) of general liability insurance coverage for passenger vehicles designed to carry up to eight passengers. For organized camps, as defined in Section 18897 of the Health and Safety Code, there shall be an additional two hundred fifty thousand dollars ($250,000) of general umbrella policy that covers vehicles.

(2) A minimum of one million dollars ($1,000,000) of general liability insurance coverage for vehicles designed to carry up to 15 passengers. For organized camps, as defined in Section 18897 of the Health and Safety Code, there shall be an additional five hundred thousand dollars ($500,000) of general umbrella policy that
covers vehicles.

(3) A minimum of one million five hundred thousand dollars ($1,500,000) of general liability insurance coverage for vehicles
designed to carry more than 15 passengers, and an additional three million five hundred thousand dollars ($3,500,000) of general umbrella liability insurance policy that covers vehicles.

34693.

This division shall become operative on July 1, 2018.

SEC. 41.

Section 6.5 of this bill incorporates amendments to Section 205 of the Business and Professions Code, as amended by Section 1 of Chapter 800 of the Statutes of 2016, proposed by this bill and Assembly Bill 1705. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 205 of the Business and Professions Code, as amended by Section 1 of Chapter 800 of the Statutes of 2016, and (3) this bill is enacted after Assembly Bill 1705, in which case Section 205 of the Business and Professions Code, as amended by
Assembly Bill 1705, shall remain operative only until July 1, 2018, at which time Section 6.5 of this bill shall become operative, and Section 6 of this bill shall not become operative.

SEC. 42.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.